Fundamental Analysis

BALAJI AMINES 

Ticker : 530999
BUY : Rs 408.50
Target : Rs 450.00

Balaji Amines Limited (BAL), one of the leading amines in India, specialises in manufacturing of methylamines, ethylamine, derivatives of amines and speciality chemicals. The company supplies its products to various companies in the pharmaceutical and pesticide industries in India and abroad. On a quarterly standalone front, the company reported net sales of Rs 221.76 crore in Q3FY20, down by 7.14 per cent from Rs 238.81 crore in the same period for the previous fiscal year. The operating profit of the company was reported at Rs 45.81 crore in Q3FY20, increasing by 4.72 per cent from Rs 43.74 crore in Q3FY19. Net profit after tax came in at Rs 26.73 crore in Q3FY20 from Rs 26.27 crore in the Q3FY19, expanding by 1.74 per cent. Increased revenues from Balaji Speciality along with stabilisation of Balaji Amines Acetonitrile plant along with, some new capacities of ethylamine and amines derivatives should buy earnings going forward. Hence, we recommend a BUY.