Should you own Archean Chemical after listing pop or book earnings?

Archean Chemical debuted strongly on Dalal Street on Monday, but the premium was lower than market participants expected.

The marine chemicals player debuted at a 10% premium at Rs 450 on the National Stock Exchange (NSE) and Rs 449 on BSE compared to the issue price of Rs 407 each.

After listing, the certificate extended its gains to a further 6% to hit an intraday high of Rs 476.05 on BSE, bringing the overall gains to 17% from the issue price.

The majority of analysts remain positive on the longer-term counter, suggesting investors stay put as they see more steam in stocks. However, a few suggested booking profits after the announcement was posted.

Arafat Saiyed, Senior Research Analyst at

Headlines suggested investors stay invested in the counter for longer. He remains positive on the title.

Manoj Dalmia, founder and director of Proficient Equities, said the show was reasonably priced. Investors can take a defensive approach by adding the stock above Rs 480, Dalmia advised.

The company’s Rs 1,462 crore IPO sold in the range of Rs 386-407 per share and received a strong response from investors. The IPO received over 32.23 bids between November 9-11.

The quota reserved for qualified institutional buyers (QIB) was subscribed 48.91 times while that reserved for non-institutional investors (NII) and traders was subscribed 14.9 times and 9.96 times respectively.

Pravesh Gour, Principal Technical Analyst,

advised investors to lock in listing gains. “Those who requested listing gains can keep a stop loss of Rs 433 in place,” he said.

Archean Chemical Industries is India’s largest exporter of bromine and industrial salt in FY 2020-21. The company is the leading manufacturer of specialty marine chemicals in India.

It is the largest bromine exporter in India and its manufacturing facility is located in Gujarat. They have 18 global customers in 13 countries and 24 domestic customers.

Ravi Singhal, CEO of GCL Securities, said the company posted impressive first-quarter FY23 results that bode well for Archean. Investors are advised to maintain a stop loss at Rs 440 and wait for further upside, Singhal added.

“Those with a medium to long-term outlook can hold the stock by maintaining a stop loss at Rs 410,” he said. In the medium term, Archean Chemical’s share price could go up to Rs 550-570, while in the long term, say next year, it could go up to Rs 640.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)