Alpha | Balaji Amines Ltd. – Equity Research Desk

Balaji Amines Limited – Largest Amine Player

Established in 1988, BAL is one of India’s leading manufacturers of aliphatic amines and its derivatives, speciality chemicals and pharma excipients. It is a manufacturer of derivatives, which are downstream products for various Pharma /Pesticide industries apart from user specific requirements. It is also a sole producer for few specialty chemicals. The company’s end-product selection policy is based on import substitution. Its diversified portfolio includes over 25 products, which has global presence. As of March 2022, the company operates manufacturing plants with an aggregate capacity of about 231,000 Metric Tonnes Per Annum (MTPA).

Valuation

BAL is available at a discounted multiple compared to its peer from the longterm perspective taking into consideration its leading position in aliphatic amine manufacturing and its strategic investments towards products which are substantial imports or products with limited competition. Hence, we recommend a BUY rating in the stock with the target price (TP) of Rs.3515, 23x FY24E EPS.

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