Accumulate Balaji Amines; target of Rs 1640: KR Choksey

KR Choksey's research report on Balaji Amines

Balaji Amines’ revenue missed our estimates due to weak demand. EBITDA missed our estimates due to miss in the revenue and operating deleverage. Adj. PAT missed our estimates due to weak operating performance, higher than expected depreciation expense, and lower-than-expected other income. We decrease our FY26E/FY27E EPS estimates by 23.0% and 24.2% to INR 83.4 and INR 102.5, respectively. This adjustment reflects the weaker-than-expected Q3FY25 performance, persistent market headwinds impacting pricing, and slower-than-anticipated demand recovery, which continue to exert pressure on profitability.

Outlook

We roll over our valuation multiple to FY27E and assign a PE multiple of 16.0x to arrive at a target price of INR 1,640 (previously: INR 2,328). Given the reduced earnings outlook, we downgrade our rating to “ACCUMULATE” from “BUY”.

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