Mehabe score: 7 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Balaji Amines Ltd specialises in manufacturing Methylamines, Ethylamines, Derivatives of specialty chemicals and Pharma Excipients. These have been the main products, it also have facilities for the manufacturing of derivatives, which are down-stream products for various pharma/pesticide industries apart from user specific requirements. It is one of the largest manufacturers of aliphatic amines in India.
Main Points
Product Portfolio
The company has a diversified product portfolio with a basket of over 25 different products. These products are categorised under 3 main categories i.e. Amines, Amine derivatives and Specialty & Other chemicals. Its products includes Methyl Amines, Ethyl amines, Amino Ethanol, acetamide, amine hydrochloride, methyl urea, choline chloride, morpholine, etc.
Its products find application in many industries like Pharma, Agro, Rubber chemicals, photographic chemicals, rocket fuel, pesticides, solvents, performance chemicals, water treatment chemicals, etc.Site:BALAMINESMain Symbol:BALAMINES
Stock trades at 3318.0, above its 50dma 2783.47. It also trades above its 200dma 1956.98. The stock remains bullish on techicals
The 52 week high is at 3445.00 and the 52week low is at 566.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 32.75% CAGR over last 5 years
Weakness
– Stock is trading at 12.02 times its book value
Competition
– The industry trades at a mean P/E of 30.4x. Pidilite Inds. trades at the industry’s max P/E of 101.64x. BALAMINES trades at a P/E of 45.3x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. BALAMINES has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 13.5%. The max 1- month return was given by Gujarat Fluoroch: a return of 54.36 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 451.0 cr compared to Rs 223.0 cr for period ended Jun 2020, a rise of 102.2%
Operating Profits reported at Rs 143.0 cr for period ended Jun 2021 vis-vis 53.0 for period ended Jun 2020 .
Operating Margins expanded 794.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 27.89 compared to Rs 26.08 for previous quarter ended Mar 2021 and Rs 10.17 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1539.0 cr for period ended TTM vis-vis sales of Rs 1308.0 cr for the period ended Mar 2021, a healthy growth of 15.0%. The 3 year sales cagr stood at 17.9%.
Operating margins expanded to 30.0% for period ended TTM vis-vis 29.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 296.0 cr for period ended TTM vis-vis sales of Rs 238.0 cr for the period ended Mar 2021, rising 19.6%.
Company recorded a healthy Net Profit CAGR of 35.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 31.0% compared to 24.0% over the last 3 Years. – The stock has given a return of 482% on a 1 Year basis vis-vis a return of 79% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 127% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.35% vis-vis 2.18% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 43.67% vis-vis 43.67% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 32.75% CAGR over last 5 years – Stock is trading at 12.02 times its book value
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2783.47 and is trading at 3318.0, thus bullish price action wise.
