Review

BALAJI AMINES 

Ticker : 530999 
FV : Rs 2  
52-Week H/L : Rs 486.60/204.10

We had previously recommended Balaji Amines in Vol. 36, No. 32, dated June 1, 2020, when the scrip was trading at Rs 408.50. It was recommended based on the increased revenues from Balaji Speciality along with stabilisation of Balaji Amines Acetonitrile plant and some new capacities. Balaji Amines Limited (BAL) specialises in manufacturing of methylamines, ethylamine, derivatives of amines and speciality chemicals. 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. Based on the company’s positive growth and financial performance, we recommend to BOOK PROFIT on June 16, 2020, at Rs 444 with a gain of 8.69 per cent.