Balaji Amines shares cut losses after diving 19% today

Shares of Balaji Amines cut their steep losses in Monday's trade. The stock, in early deals, tanked 18.79 per cent to hit a day low of Rs 1,872.90 over its previous close of Rs 2,306.10. It was last seen trading 6.31 per cent lower at Rs 2,160.60. The stock today fell for the second straight session.

The weakness in the share price came after the company posted a 57.81 per cent decline (year-on-year) in the March 2023 quarter (Q4 FY23). Profit after tax (PAT) for Q4 FY23 was Rs 55.21 crore as compared to Rs 130.85 crore in Q4 FY22. Diluted EPS (earnings per share) for Q4 FY23 stood at Rs 14.63 per equity share as against Rs 33.56 in Q4 FY22.

Balaji Amines' revenue from operations for Q4 FY23 came at Rs 476.90 crore against Rs 785.41 crore in the same period a year ago. "EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 FY23 was Rs 98.63 crore, as compared to Rs 201.16 crore in Q4 FY22. EBITDA margin for Q4 FY23 stood at 20.68 per cent as against 25.61 per cent in Q4FY22. The fall in operating margin was primarily on account of degrowth in pharma and API sector," it stated.

In addition, the company's chief financial officer (CFO), Hemanth Reddy Gaddam, resigned on Saturday. Gaddam, full-time director and CFO, has resigned to focus on a subsidiary company, Balaji Speciality Chemicals Ltd, the company said in an exchange filing.

Balaji Amines also announced that independent directors Naveena Thammishetty Chandra, Kashinath Revappa Dhole, Satyanarayana Murthy Chavali, Amarender Reddy Minupuri, and Vimala Behram Madon have quit. "We further confirm that there is no other material reason for the resignation of directors other than those mentioned in their resignation letters, and the same is enclosed," it further stated.

On the technical front, the counter largely looked 'bearish'. Support on the counter could be seen at Rs 1,943, an analyst said.

"Below average Q4 FY23 results with a significant drop in net profit has expectedly led to a fall in Balaji Amines stock price with support at Rs 1,943 on the daily charts. A daily close below the above-mentioned support could lead to a lower target of Rs 1,613 in the near term. Resistance will be at 2,113," said AR Ramachandran from Tips2trades.

"The stock is in a secular down run with no sign of respite. Also, it is placed below all its major EMA (Exponential Moving Averages) in all time frames. Also, the counter has witnessed a strong sell-off in today's session, adding a bearish quotient. Any correction beyond the Rs 2,000 mark could further aggravate the sell-off in the counter and it may plunge towards Rs 1,800-odd levels. On the flip side, Rs 2,100-2,300 is likely to act as the stiff resistance in the comparable period," said Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One.

Meanwhile, Indian equity benchmarks traded higher in today's deals, led by gains in technology, metals, healthcare and energy stocks.