with a market capitalization of 11,728.51 Crore, Balaji Amines Limited is a mid-cap company dealing in the chemical industry. Methylamines, ethylamines, derivatives of specialty chemicals, and pharmaceutical excipients are among the products that Balaji Amines Limited specializes in manufacturing. Balaji Amines Limited (BAL) is also one of the top producers of aliphatic amines in India. This specialty chemical stock has made investors millionaires in 15 years of long term investment. This is one of the multibagger stocks that the stock market observers have seen, let’s know how.
Share Price History of Balaji Amins
Shares of Balaji Amines Limited closed today on NSE 3,624.95 each, up 5.54% from the previous close of 3,434.75. share price climbed 28.42, at the current market price on April 5, 2007, represents a multi-bagger return and is an all-time high of 12,654.93%. As a result, if an investor had invested 1 lakh 15 years ago in the shares of Balaji Amines Limited, now the price will be 1.27 crore share price has gone up 383.30 at the current market price during the last five years as on September 15, 2017 resulting in a multibagger return of 845.72% and an estimated CAGR of 56.75%. As a result, if an investor had bought the stock for 1 lakh five years ago, today will be the price 9.45 lakhs.
The stock is down 16.08% over the past year, and it’s down 2.56% so far in 2022 on a YTD basis. On NSE, the stock had touched a 52-week high 52-week low of 5,223.55 and at (15-Sep-2021) 2,692.75 (07-March-2022) indicates that the stock is trading at a discount of 30.60% from the high and 34.61% from the low at the current market price. As of today’s closing price, the stock was last seen trading above the Exponential Moving Average (EMA) for 5 days, 10 days, 20 days, 50 days, 100 days and 200 days.
Balaji Amines Q1FY23 Results
On a consolidated basis, the company reported net revenue of 674.86 crore in Q1FY23 as compared to 453.35 crores was registered in Q1FY22, representing a year-on-year growth of 48.86%. Company’s EBITDA up 52.11% year-on-year Q1FY22 to . 144.29 crore in 219.48 crore in the quarter ended June 2022. The company’s earnings before interest and taxes (EBIT) grew 54.81% year over year Q1FY22 to . 134.62 crore in 208.40 crore in Q1FY23. Company reported profit before tax (PBT) 204.98 crore in Q1FY23 as compared to 131.48 crores were registered in the corresponding quarter last year, representing a year-on-year growth of 55.90%. The Profit After Tax (PAT) or Net Profit of the company increased by 51.99% yoy Q1FY22 to . 97.40 crore was registered in 148.04 crore in Q1FY23. eps climbed Compared to 37.95 in June 2022 27.90 in June 2021.
On a standalone basis, the company reported net sales of 517.47 crore in Q1FY23 as compared to 395.67 crore reported in the year-ago quarter, representing a year-on-year growth of 30.78%. EBITDA jumped 13.37% y-o-y from Q1FY22 to . 116.92 crore in 132.55 crore in Q1FY23 and PBT up 13.37% y-o-y Q1FY22 to . 109.50 crore was registered in 124.14 crore in Q1FY23. Whereas, PAT grew by 13.27% year-on-year Q1FY22 to . 81.81 crore in 92.67 crore in Q1FY23.
The company in its financial report said that “Our capex for the DMC plant under Phase 1 of our 90-acre greenfield project (Unit IV) is almost complete and we expect to start operations by the end of August 2022. Manufacturing process with some improvements, this plant will have a capacity to manufacture around 15,000 tonnes of DMC per year. This will also lead to a production capacity of 15,000 tonnes per annum of Propylene Glycol. At the peak of capacity utilization, this new plant will be able to generate revenue of Rs. Will be able. 250 to 300 crores per year.”
“Our new acetonitrile plant, we plan to start production through a new advanced technology, where we envisage a cost advantage, which will enable us to cope with higher acetic acid prices and maintain healthy operating margins. This plant is likely to be commissioned by the middle of FY 24. In the medium to long term, we expect substantial demand for this product as the ‘China Plus One’ strategy is at the center stage and provided by the Government of India. The PLI incentives lead to substantial capital expenditure by pharmaceutical and agrochemical companies. We expect to see an increase in capacity utilization for our old products in FY 2013. We are looking at increasing our ethylmines (new) products, the company said in its investor presentation report. Plant), expect substantial improvement in volume offtake in FY 2013 from improved capacity utilization at DMF and acetonitrile plants as well as capacity addition at our new DMC plant.
Should you buy Balaji Amines Limited (BAL) shares?
“The stock is currently trading at 24.5x 24.5x FY23e EPS of Rs 140.94 and 19.8x FY24e EPS at Rs 174.69,” said research analysts at broking firm CD Equisearch Pvt Ltd. Pharma amid fears of slowdown in advance economies Considering some stagnation in demand, we have cut our FY23 EPS estimates by 6.4%.However, the diversification of its product portfolio has offset friction from demand disruptions for raw material availability for the DMF plant fires. Growth in the current fiscal will be primarily on account of accelerating EDA ethylamine utilization and capacity addition from the new DMC plant. Balaji’s process expertise in amines and increasing integration of its products provide no small competitive advantage. Balancing the odds, we retain our ‘Buy’ rating on the stock with a revised target of Rs. 4542 (previous target: Rs. 3916) based on 26x FY24 earnings.”
“We believe that its strong product mix, its ongoing healthy pricing across most of its products and increased operating profit due to increased volume offtake were the main drivers of improving operating margins. Its defined capex plans continue to drive growth story in the years to come. At a CMP of INR 3,557, BAL is trading at a P/E valuation of 24.91x/19.38x FY23E/24E earnings.We maintain the ‘Buy’ recommendation, said research analysts at broking firm KR Choksey Research and apply a P/E multiplier of 23.5x (unchanged) to its FY24E earnings with a similar target price of INR 4,313.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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