Balaji Amines: Does it merit a look?

Key monitorable to watch would be sustenance of operating margins for the subsidiary - Balaji Specialty

Anubhav Sahu
May 24, 2023 / 11:38 AM IST
Balaji Amines: Does it merit a look?

chemical

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Highlights Q4 FY23 impacted by weak end markets, particularly pharma Margins mean reverting to pre-COVID levels FY24 to witness volume led growth from new products Emphasis on import substitution added with new announcements Valuation reasonable post significant de-rating Elevated channel inventory in the pharma and agri-end markets have led to a volume de-growth for chemical ingredients suppliers Balaji Amines (CMP: Rs 2,211; M Cap: Rs 7,181 crore). The Q4 FY23 performance indicates that unusually high operating margins seen for the last 11 quarters are coming to...