Accumulate Balaji Amines; target of Rs 1612: Deven Choksey

Deven Choksey recommended accumulate rating on Balaji Amines with a target price of Rs 1612 in its research report dated June 10, 2025.

Broker Research

June 10, 2025 / 10:29 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Deven Choksey's research report on Balaji Amines

Balaji Amine’s revenue stood at INR 3,527 Mn., down 14.8% YoY (+12.8% QoQ), led by lower volume (-7.5% YoY) and realizations (-7.8% YoY). Moreover, the revenue was sharply below our estimates (-10.3%) led by weaker volume momentum. EBITDA stood at INR 597 Mn., down 38.9% YoY (+30.5% QoQ), sharply below our estimates (-13.4%), led by weaker revenue growth and contraction in gross margins. EBITDA Margin declined by 669bps YoY to 16.9% (+230bps QoQ). Adjusted net profit stood at 401 Mn., down 41.1% YoY (+20.7% QoQ), below our estimate (-9.2%) led weaker operational performance.

Outlook

We have revised our FY26E/FY27E EPS estimates by -23.1%/-21.4% respectively, factoring in a more gradual recovery in realizations and margins. Although sequential margin expansion offers initial comfort, sustained pricing stability and a visible uptick in end-market demand remain key near-term triggers. We value Balaji Amines at 20.0x FY27E EPS, implying a target price of INR 1,612. We reiterate our “ACCUMULATE” rating on the stock.

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