Alkyl Amines Chemicals (AACL) reported a muted operating performance in 2QFY26 as EBITDA declined 5% YoY. Despite some raw material cost pressure, EBITDA margins expanded marginally by 30bp YoY to 18%. While volume growth in 1HFY26 was marginally higher on a YoY basis, the momentum is expected to remain muted in the near term due to prevailing demand softness across key end-user industries, ongoing geopolitical uncertainties, and heightened competitive intensity from Chinese manufacturers. Additionally, global sanctions and trade restrictions are likely to continue to disrupt supply chains.
OutlookWe estimate a CAGR of 6%/7%/8% in revenue/EBITDA/PAT over FY25-28 and maintain our earnings estimates. We value the stock at 45x FY27E EPS to arrive at a TP of INR1,900. Reiterate Neutral.bus
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