5151.15 -30.45 (-0.59%)
NSEMar 04, 2021 03:31 PM
The 4 reports from 1 analysts offering long term price targets for Alkyl Amines Chemicals Ltd. have an average target of 4010.00. The consensus estimate represents a downside of -22.15% from the last price of 5151.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-09-03||Alkyl Amines Chemica.. +||HDFC Securities||3349.65||4010.00||3349.65 (53.78%)||Target met||Buy|
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.
|2020-08-17||Alkyl Amines Chemica.. +||HDFC Securities||2878.65||3355.00||2878.65 (78.94%)||Target met||Buy|
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.
|2020-07-21||Alkyl Amines Chemica.. +||HDFC Securities||2260.65||2560.00||2260.65 (127.86%)||Target met||Buy|
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.
|2020-06-26||Alkyl Amines Chemica.. +||HDFC Securities||2127.50||2500.00||2127.50 (142.12%)||Target met||Buy|
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.
|2020-01-10||Alkyl Amines Chemica.. +||HDFC Securities||1256.30||1790.00||1256.30 (310.03%)||Target met||Buy|
|2019-11-08||Alkyl Amines Chemica.. +||HDFC Securities||1015.20||1770.00||1015.20 (407.40%)||Target met||Buy|
(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).
|2019-08-07||Alkyl Amines Chemica.. +||HDFC Securities||777.70||1369.00||777.70 (562.36%)||Target met||Buy|
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
|2019-05-23||Alkyl Amines Chemica.. +||HDFC Securities||790.00||1313.00||790.00 (552.04%)||Target met||Buy|
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
|2019-01-31||Alkyl Amines Chemica.. +||HDFC Securities||752.50||1306.00||752.50 (584.54%)||Target met||Buy|
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.
|2018-08-07||Alkyl Amines Chemica.. +||KRChoksey||646.95||766.00||646.95 (696.22%)||Target met||Buy|
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...
|2018-07-31||Alkyl Amines Chemica.. +||HDFC Securities||634.00||940.00||634.00 (712.48%)||Buy|
We are valuing AACL at 22x Jun'20 EPS and maintain a Buy rating with a TP of Rs 940. Alkyl Amines reported numbers in line with our estimates; Alkyl Amines reported Sales/EBITDA/PAT growth of 20.9/54.3/40.1% YoY to Rs 1.78bn/Rs 369mn/Rs 177mn respectively. EBITDA and PAT declined sequentially by 8.6/24.2% (AACL had reported the highest quarterly PAT in 4QFY18).
|2018-05-29||Alkyl Amines Chemica.. +||ICICI Securities Limited||675.05||675.05 (663.08%)||Mgmt Note|
ICICI Securities Limited
We recently met Kirat Patel, Executive director at Alkyl Amines Chemicals (Alkyl) to get an insight into the amines chemistry business and the company's role in the value chain. Alkyl is a key player in the oligopolistic ammonia chemistry segment in India. The company was established in 1979 and has 12 manufacturing plants in western India (Maharashtra, Gujarat) with a state-of-the-art R&D; unit in Pune. Alkyl manufactures primary chemicals in aliphatic amines domain like methylamines, ethylamine and its derivatives and specialities like DMAHCL, acetonitrile,...
|2018-05-21||Alkyl Amines Chemica.. +||HDFC Securities||699.00||900.00||699.00 (636.93%)||Target met||Buy|
We maintain Buy on Alkyl Amines and value AACL at 22.0x FY20E EPS with a target price of Rs 900/share. Alkyl Amines reported a strong 4QFY18 with Sales/EBITDA/PAT growing by 32.7%/86.0%/112.9% to Rs 1.74 bn/Rs 404mn/Rs 233mn. AACL reported numbers ahead of our expectations due to a better mix and higher realizations of some of its key products (Acetonitrile realizations were up 15.8% YoY to Rs 150/kg).
|2018-02-06||Alkyl Amines Chemica.. +||KRChoksey||634.10||762.00||634.10 (712.36%)||Target met||Buy|
The company reported top line for the quarter at INR 1531 mn as against INR 1364 mn for Q3FY17 and INR 1381 mn for Q2FY18; which grew by 12.3% y-o-y and 10.9% q-o-q. The top line was in line with our expectations of INR 1498 Mn showing a deviation of 2%. EBIDTA during the quarter stood at INR 267 mn; down by 10% y-o-y; up by 10.7% q-o-q on account of higher than expected raw material costs. This resulted in margin erosion by 429 bps y-o-y and 3 bps q-o-q standing at 17.4%. Further, PAT for the quarter came in at INR 152 mn down 10% y-o-y; up...
|2017-11-27||Alkyl Amines Chemica.. +||KRChoksey||587.00||762.00||587.00 (777.54%)||Target met||Buy|
Net Income for Q2FY18 came in at INR 1381 mn as against INR 1241 mn for Q2FY17 and INR 1474 mn for Q1FY18; which grew by 11.3% y-o-y but de-grew by 6.3% q-o-q. EBIDTA during the quarter stood at INR 241 mn; up by 20.7% y-o-y and 3.8% q-o-q, while EBITDA margins surged to 17.5%. Operating margins increased by 135 bps y-o-y and 170 bps q-o-q assisted by margin lucrative product mix....
|2017-05-29||Alkyl Amines Chemica.. +||BOB Capital Markets Ltd.||391.90||466.00||391.90 (1214.40%)||Target met||Buy|
Alkyl Amines Chemicals Ltd Q4FY17 Result Review
BOB Capital Markets Ltd.
Strained margins, long-term story Intact; Maintain BUY Alkyl Amines Chemicals Ltd. has reported its Q4FY17 result with a revenue growth of 8.3%/-3.8% YoY/QoQ, respectively, to ~Rs. 1,311 mn. The EBITDA of the Company stood ~Rs. 212 mn, a reduction of ~21.6%/28.7% YoY/QoQ, with a margins being contracted to ~16.1% vs...
|2016-05-27||Alkyl Amines Chemica.. +||BOB Capital Markets Ltd.||317.50||508.00||317.50 (1522.41%)||Target met||Buy|
Alkyl Amines Chemicals Ltd Q4FY16 Result Review
BOB Capital Markets Ltd.
Strong Quarter led by high Margins; Maintain BUY Alkyl Amines Chemicals Ltd., reported strong margin growth in Q4FY16 result. It has posted net sales of ~Rs.1210 mn, growth of ~3%/8.5%...
|2015-12-09||Alkyl Amines Chemica.. +||BOB Capital Markets Ltd.||307.05||512.00||307.05 (1577.63%)||Target met||Buy|
Alkyl Amines Chemicals Ltd Initiating Coverage with BUY
BOB Capital Markets Ltd.
Valuation: Alkyl Amines Chemicals Ltd. trades at 12.4x one-year forward P/E, and we expect that the following factors will further drive the stock upside: 1) Growth of pharmaceuticals, agrochemicals and other industries AACL serves, 2) Fast paced...