Archean Chemical – Specialty Chemical Leader

Hi Aditya,

I have been researching this stock for a while now.
Below are few risks apart from the ones you pointed out.

1. The company had a single location in Rann of kutch and the lease agreement with the government ended in 2018 and it never got renewed till date. They didn’t mention this in the IPO document but auditor flagged it in latest annual report

2. IPO proceeds, i have this bad habit of chasing after money, when loads of it falls into balance sheet.
   If you do a basic triangulation of IPO proceeds and profits earned using cash flow statement and balance sheet, you will see 250 crores missing.

3. If you read the last 2 concalls there is a book keeping question asked by an analyst which is at the end of the concall transcript.
   Q: why did your employee costs suddenly increase?

The finance folk from company said, the promoter takes 2-3% of revenue as commission. This information not mentioned in agm or ipo document anywhere.

These are key risks i identified.

I could be wrong do your own due diligence