Neutral Alkyl Amines Chemicals; target of Rs 1730: Motilal Oswal

Motilal Oswal recommended Neutral rating on Alkyl Amines Chemicals with a target price of Rs 1730 in its research report dated February 03, 2026.

Broker Research

February 06, 2026 / 17:52 IST

Neutral

Motilal Oswal's research report on Alkyl Amines Chemicals

Alkyl Amines Chemicals (AACL) reported a muted operating performance in 3QFY26 as EBITDA declined 6% YoY. Further, higher raw material costs (gross margin contracted 50bp YoY) resulted in a marginal 20bp YoY contraction in EBITDA margins to 19%.The momentum is expected to remain muted in the near term due to prevailing demand softness across key end-user industries and heightened competitive intensity from Chinese manufacturers. We broadly maintain our earnings estimates and value the stock at 38x FY28E EPS to arrive at a TP of INR1,730. Reiterate Neutral.

Outlook

We estimate a CAGR of 5%/7%/8% in revenue/EBITDA/PAT over FY25-28 and maintain our earnings estimates. We value the stock at 38x FY28E EPS to arrive at a TP of INR1,730. Reiterate Neutral.

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