KR Choksey's research report on Balaji Amines
Balaji Amines’ revenue missed our estimates due to decline in price realization and volume. EBITDA missed our estimates due to miss in the revenue and operating deleverage. Adj. PAT missed due to higher-than-expected depreciation expense. We decrease our FY26E EPS estimates to INR 108.3 (previously: INR 119.5) due to a significant miss in Q2FY25 revenue and profitability compared to our estimates, slower than expected price recovery and delay in adoption of certain chemicals by battery manufacturers.
Outlook
We maintain our PE multiple at 21.5x as we anticipate volumes to improve in H2FY25E, with growth accelerating from FY26E as newly added capacities scale up and the company's emphasis on high-margin products will enhance profitability. Therefore, we arrive at a target price of INR 2,328 (previously: INR 2,569) and maintain our “BUY” rating.
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