From Rs 1443 to Rs 3123: This speciality chemical company has turned into a multibagger in the past year!

Rising demand for agrochemicals and advanced technology in agriculture augmenting the amines market share.

Leading manufacturer of aliphatic amines and speciality chemicals in India, Balaji Amines Limited has turned multibagger in the past year by delivering a return of 116.39 per cent to its shareholders. The stock closed at Rs 3,123 on February 09, 2022, from a low of Rs 1,443.25 on February 09, 2021, thus doubling investor wealth. 

Balaji Amines manufactures, sells and exports methylamines, ethylamine and derivatives of speciality chemicals and pharma excipients in India. The firm serves pharmaceuticals, agrochemicals, refineries, paints, water treatment chemicals, dyes, coatings, polymers, textiles, personal and home care, animal nutrition etc.  

In Q3, Balaji Amines Ltd (BAL) posted strong sales growth, driven by higher realisations and robust performance by subsidiary Balaji Specialty Chemicals. Total consolidated revenue was up 44.06 per cent YoY and 7.45 per cent QoQ to Rs 564.90 crore. On the operational front, PBIDT (Ex OI) stood at Rs 158.73 crore, up 35.24 per cent YoY and 20.87 per cent QoQ. The operating margins were hit by 182 bps on a YoY basis but improved 314 bps in Q3FY22. Consolidated PAT stood at Rs 101.59 crore was up 28.75 per cent YoY and 15.36 per cent QoQ. 

Rising demand for agrochemicals and advanced technology in agriculture augmenting the amines market share. The industry is expected to reach USD 20.8 billion by 2025, registering a CAGR of 3.6 per cent. The industries oligopolistic nature means that there are only just a handful of producers catering to the majority of the demand. Factors such as growing population and rapid urbanization are having a positive impact on the demand for amines which is thereby driving the stock price up.  

At 3.30 pm on Thursday, the stock was trading flat at Rs 3123.10. The 52-week high of the scrip is recorded at Rs 5,220 and the 52-week low at Rs 1,410.80 on the BSE.