KR Choksey's research report on Balaji Amines
Balaji Amines revenue beat our estimate by 4.5% due to strong volume growth in Amines and Amine derivatives. The EBITDA beat our estimate primarily due to a beat in revenue and lower-than-expected operating expenses. We believe that the recently launched N-Butyl Amine project will contribute to growth. Additionally, the ongoing Methyl Amine and Dimethyl Ether projects are progressing well and are expected to be long-term growth drivers. Currently, the stock is trading at PE multiples of 23.2x/18.0x, based on FY25E/FY26E EPS, respectively. We expect the revenue to grow at 21.7% CAGR and PAT to grow at 39.5% CAGR over FY24-26E.
Outlook
We decrease the target price to INR 2,643/share (previously: INR 2,828) and retain our BUY rating on the stock, implying an FY26E P/E multiple of 21.5x.
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