Goldman Sachs-owned, DII favourite small-cap stock drops 4%; Axis Securities downgrades it; do you own?

Small-cap stock Archean Chemical Industries declined nearly 4 per cent in intraday trade on the BSE on Thursday, May 8, looking set to extend losses to the third consecutive session. Archean Chemical Industries share price opened at 603.25 against its previous close of 605.40 and declined 3.6 per cent to an intraday low of 583.45. Around 12:45 PM, the small-cap stock traded 2.71 per cent lower at 589. Equity benchmark Sensex was almost flat at 80,789 at that time.

Archean Chemical Industries Q4 results 2025

The speciality chemicals company announced its Q4FY25 results after market hours on May 2. The company reported a 2.2 per cent year-on-year (YoY) decline in its profit after tax (PAT) for the quarter to 58.31 crore from 59.64 crore in the same quarter last year.

Total income, however, increased 12 per cent to 333.33 crore from 297.22 crore in Q4FY24.

EBITDA in Q4FY25 saw a mild dip, coming at 101.12 crore from 101.94 crore in Q4FY24.

Axis Securities downgrades the stock

Brokerage firm Axis Securities downgraded the stock to a “hold” from a “buy”, pegging the target price of 560.

Axis pointed out that the company’s Q4FY25 consolidated revenue beat its estimate by

17 per cent. However, EBITDA fell short of its estimates by 4 per cent, while the PAT also missed its estimate by 4 per cent.

According to Axis Securities, Archean Chemical Industries remains confident in its bromine derivatives project and the strategic acquisition of Oren, which is expected to make a meaningful contribution to the top line in the coming quarters.

Moreover, Axis highlighted that the company anticipates sustained strong demand in the industrial salt segment and a recovery in the SOP segment beginning in FY26.

Strategic investments have also been made in two UK- and US-based companies, which are expected to unlock new growth opportunities in semiconductors and energy storage, Axis Securities said.

(This is a developing story. Please check back for fresh updates.)

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.

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