Alkyl Amines Chemicals Ltd.    
03 Sep 2020
3011.20
4.04%
HDFC Securities
Being a B2B business industry, the growth of the industry tends to mimic the growth of its end-user industry. We believe that companies supplying speciality chemicals to pharmaceutical and agrochemical industries are in a sweet spot due to (1) steady growth and (2) stringent regulations that create entry barriers for competitors. We maintain BUY on Alkyl Amines, Balaji Amines, and Galaxy Surfactants; ADD on Navin Fluorine (NFIL), while maintaining SELL on Vinati Organics. We are also initiating coverage on SRF and Aarti Industries (AIL) with a BUY recommendation. Our positive stance on our speciality chemicals universe is premised on (1) domestic availability of raw materials, (2) accelerated capital expenditure (Capex) to build product development capabilities and backward integration resulting in EBITDA and PAT CAGR of 19/23% over FY21-23E, (3) investment in Research & Development (R&D;), which would allow these companies to step up their position in the speciality chemicals manufacturing value chain to become 'proprietary chemical producers', and (4) import substitution along with export opportunity.
Alkyl Amines Chemicals Ltd. has gained 60.89% in the last 6 Months
Alkyl Amines Chemicals Ltd.    
17 Aug 2020
3011.20
4.04%
HDFC Securities
DCF-based valuation:Our price target is INR 3,355, basis Jun-22E cash flows (WACC 10%, terminal growth 3%). The stock is trading at 20.4x FY23E EPS. Our BUY recommendation on AACL with a TP of INR 3,355 is premised on (1) robust demand from pharmaceutical and agrochemical customers that form ~70% of AACLs revenue mix, (2) rising domestic market share in Methyl Amines, (3) impending capacity expansion for (high-margin) Acetonitrile, and (4) production linked incentive scheme that provides the right tailwinds for long-term volume growth. 1Q EBITDA/APAT was 95%/2.2x above estimates, owing to the lower-than-anticipated impact of COVID-19 on sales volumes and higher-than-anticipated margins. Margins were largely driven by three products, viz. pharma grade-Acetonitrile, DMA-HCL and Isopropyl amine.
Alkyl Amines Chemicals Ltd. has gained 228.09% in the last 1 Year
Alkyl Amines Chemicals Ltd.    
21 Jul 2020
3011.20
4.04%
HDFC Securities
The average Brent price fell 38% QoQ to USD 31.3/bbl in 1Q. Sharp correction in oil prices and benign gas prices (~USD 2.3/mmbtu) have resulted in a fall in raw material prices for chemical manufacturers. We believe that companies will only partially pass the benefit of falling raw material prices, resulting in a gross margin expansion. EBITDA margin shall decline, courtesy low utilisation. Revenue for our coverage universe is likely to decline by ~26/24% YoY/QoQ and EBITDA would decline by 29/33% YoY/QoQ owing to the lockdown. Chemical companies directly/indirectly cater to sectors such as automobiles, FMCG, pharma, textile, agrochemicals, foods, dyes & pigments. Despite obtaining permissions to resume manufacturing in the 2H of 1Q, lack of demand and logistics challenges, particularly in supply of goods, forced chemical companies to operate their plants at lower utilisation.
Alkyl Amines Chemica.. has an average target of 4010.00 from 1 broker.
Alkyl Amines Chemicals Ltd.    
26 Jun 2020
3011.20
4.04%
HDFC Securities
DCF based valuation:Our TP is INR 2,500 based on Sep-21E cash flows (WACC 10%, Terminal growth rate 3.0%). The stock is trading at 18.7x FY22 EPS. Our BUY recommendation on AACL with a TP of INR 2,500 is premised on (1) Robust demand from pharmaceutical and agrochemical industry that form 70% of revenue mix, (2) Rising market share in Methyl Amines, and (3) Impending capacity expansion for multiple products, including the high-margin Acetonitrile.
Alkyl Amines Chemicals Ltd. has gained 31.87% in the last 3 Months
Alkyl Amines Chemicals Ltd.    
10 Jan 2020
3011.20
4.04%
HDFC Securities
Chemicals: Alkyl Amines stands out Oil & Gas: CGD to shine
Alkyl Amines Chemicals Ltd. has gained 228.09% in the last 1 Year
Alkyl Amines Chemicals Ltd.    
08 Nov 2019
3011.20
4.04%
HDFC Securities
(1) Backed by robust demand by the Pharma industry, (2) 15kTPA capacity addition of Methyl Amines at Dahej, and (3) Enhanced Acetonitrile capacity by 15kTPA to 33, will help AACL garner market share. With strong return ratios (RoIC of >25% over FY20-22E) and attractive valuations (trading at 13.3/11.6 FY21/22E EPS), Alkyl Amines is our top pick in the Chemicals space. We maintain BUY on AACL post a beat on our EBITDA estimates in 1HFY20. We bump-up our EBITDA margins by ~200-300bps over FY20-22 to factor in AACLs enhanced bargaining power and improved product mix. Our revised target price is Rs 1,770 (22x Sep-FY21 EPS).
Alkyl Amines Chemicals Ltd. is trading above it's 200 day SMA of 2140.7
Alkyl Amines Chemicals Ltd.    
07 Aug 2019
3011.20
4.04%
HDFC Securities
High intrinsic profitability (RoIC 20%+), market share gains in Methyl Amines, and a prudent management make AACL an attractive bet at 13.6/11.6 FY21/22E EPS. While margins may remain flat as Methyl Amines share in the mix rises, fresh capacities of Amine Derivatives will help them recover. We value AACL at 22x Jun-21E EPS and maintain BUY with a TP of Rs 1,369. Post a blowout (but unsustainable) performance in 1QFY20, we maintain faith in Alkyl Amines owing to the upcoming expansion in Methyl Amines. Maintain BUY
Alkyl Amines Chemicals Ltd. is trading below it's 30 day SMA of 3138.0
Alkyl Amines Chemicals Ltd.    
23 May 2019
3011.20
4.04%
HDFC Securities
Strong return ratios (RoIC to improve from 18.9% in FY19 to 19.8% in FY21E), gain in market share in Methyl Amines and its derivatives and a prudent management make AACL an attractive bet at current valuations (trading at 13.4 FY21E EPS). We are valuing AACL at 22x Mar'21E EPS and maintain a BUY rating with a TP of Rs 1,313. Strong return ratios (RoIC to improve from 18.9% in FY19 to 19.8% in FY21E), gain in market share in Methyl Amines and its derivatives and a prudent management make AACL an attractive bet at current valuations (trading at 13.4 FY21E EPS). We are valuing AACL at 22x Mar'21E EPS and maintain a BUY rating with a TP of Rs 1,313. Despite an underwhelming Q4FY19 performance, we urge investors to keep their faith intact in AACL owing to the (1) Impending gain in market share in the Methyl Amines space, (2) Expanding margins as the share of derivatives in the total product mix increases. Maintain BUY
Alkyl Amines Chemicals Ltd. is trading below it's 30 day SMA of 3138.0
Alkyl Amines Chemicals Ltd.    
31 Jan 2019
3011.20
4.04%
HDFC Securities
We are valuing AACL at 22x Dec'20 EPS and maintain a Buy rating with a TP of Rs 1,306. Alkyl Amines (AACL) reported another strong quarter with Sales/EBITDA/PAT growing at 38.9/44.3/47.4% YoY to Rs 2.12bn/386mn/221mn respectively. AACL continues to ramp up its newly commissioned Methyl Amines capacity (30KTPA) in Dahej and is operating at ~70% utilization.
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Alkyl Amines Chemicals Ltd. is trading above it's 200 day SMA of 2140.7
Alkyl Amines Chemicals Ltd.    
07 Aug 2018
3011.20
4.04%
KRChoksey
EBIDTA during the quarter came in at INR 369 mn which was up by 54.3% YoY and down by 8.5% QoQ. OPM stood at 20.7% impacted by changes in inventory and was broadly in line with our estimates of 20.8%. Further, the bottom line stood at INR 177 mn growing by 40% on YoY basis while taking a hit of 24% on sequential basis mainly on account...
Alkyl Amines Chemicals Ltd. has gained 60.89% in the last 6 Months