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Rs 405 to Rs 2,899: This stock turned into a multibagger in 1 year

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  • The share stood at Rs 404.6 on May 27, 2020. it's zoomed to Rs 2,899.10 today, translating into gains of 614.37 percent during the amount

Share of Balaji Amines has delivered quite 600 percent returns to its shareholders within the last 12 months. The share stood at Rs 404.6 on May 27, 2020. it’s zoomed to Rs 2,899.10 today, translating into gains of 614.37 percent during the amountas compared, Sensex clocked 62 percent in one year.          multibagger multibagger multibagger

Rs 5 lakh invested in Balaji Amines share a year ago would have become Rs 35.82 lakh today.

The stock has gained 212.6 percent since the start of this year. It ended 4.35 percent higher at Rs 2,899.10 against the previous close of Rs 2778.35 on BSE.

The share of Balaji Amines stands above 5 days, 10 days, 20 days, 50 days, 100 days, and 200-day moving averages. The market cap of the firm rose to Rs 9,393.37 crore.

Rajesh Agarwal, Head of Research, AUM Capital Market, told Business Today, “BAL’s major thrust is to expand its portfolio of key derivative products in conjunction with entering newer specialty chemicals from both vertical combination and operating efficiencies,”

“The company also plans to expand its export market over the medium to future, given the eagerness of worldwide companies to scale back their exposure to Chinese sources of suppliers. The steady demand from the Pharmaceutical and Agrochemical industry that comprises quite 70% of the revenue mix alongside higher price realization bodes well for the corporate from a growth perspective,” he noted.

“Q4 numbers are strong and with the primary phase of Greenfield project commencing operations for the manufacturing of Ethyl Amines with a capacity of fifty tons per day, the numbers are likely to urge better going forward,” he added.

The company reported a profit of Rs 84.5 crore for the quarter ended March 2021 compared to Rs 29.5 crore within the year-ago quarter. Revenue from operations in Q4FY21 rose to Rs 414 crore against Rs 258 crore in Q4FY20.

EBITDA margin for Q4FY21 stood at 30.30 percent, up by 669 basis points, as compared to 23.61 percent in Q4FY20. the development in operating margins was totally on account of higher price realisations across most of the products and a rise in operating leverage thanks to a surge in volume offtake.

On the earnings performance, D. Ram Reddy, the director said, “We witnessed improved demand and price realizations across most of our product portfolio, resulting in much improved operating leverage and better margins. However, pandemic-related disruptions of both inbound and outbound logistics support, also as lack of adequate supply of commercial oxygen, resulted in less than optimal production.

“Our state-of-the-art new plant of Ethylamines, having installed capacity of fifty tons per day (16,500 tons once a year ), which is a component of Phase 1 of our 90-acre Greenfield Project (Unit IV) at Solapur has commenced operations from last week. Now, alongside the pre-existing capacity of 6,000 plenty of Ethylamines, the corporate has the most important installed capacity of Ethylamines in India at 22,500 tons per annum.”

He further said, “With the commencement of this plant, Balaji Amines is that the largest manufacturer of Methylamines, Ethylamines, and other chemicals in India. The new plant of Ethylamines at Unit IV will cause a lower cost of production thanks to new technology. There was a small delay within the commencement of this new plant on account of pandemic led disruptions.”

The company also informed that its subsidiary – Balaji Specialty Chemicals Private Ltd. – witnessed a considerable ramp-up in capacity utilisation thanks to a rise in demand for Ethylenediamine (EDA).

The company is currently manufacturing 1,300-1,500 tonne per month, which can be further ramped up going forward, once the availability of staple eases.

Balaji Amines Ltd (BAL) may be a leading manufacturer of Aliphatic Amines in India. Broadly, the corporate is specialises in manufacturing Methyl Amines, Ethyl Amines, Derivatives of Specialty Chemicals, and Natural Product and its business is broadly classified into three segments – Amines, Specialty Chemicals, and Derivatives.

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