KR Choksey's research report on Balaji Amines
Revenue from Operations for Q4FY23 stood at INR 4714.0 mn, as compared to INR 7790 mn in Q4FY22 and INR 5859 mn in Q3FY23, declined by 39.5% YoY and 19.6% QoQ. Total volumes stood at 26,505 MT for Q4FY23 as against 33,780 MT in Q4FY22. EBITDA for Q4FY23 was INR 931 mn, as compared to INR 1972 mn in Q4FY22 and 1278 mn in Q3FY23, declined by 52.8% YoY and 27.1% QoQ. EBITDA margin for Q4FY23 stood at 19.8% as against 25.3% in Q4FY22 and 21.8% in Q3FY23. The fall in operating margin was primarily on account of degrowth in pharma and API sector. PAT for Q4FY23 was INR 552.1 mn, as compared to INR 1310.0 mn in Q4FY22 and INR 837.9 in Q3FY23, declined by 57.8% YoY and 34.1% QoQ. Diluted EPS for Q4FY23 stood at ₹ 14.63 per equity share as against ₹ 33.56 in Q4FY22.
Outlook
At CMP, BAL is trading at 17.1x/13.6x its FY24E/25E earnings. We remain positive as it will sustain growth potential and value the stock at a target P/E multiple of 20x FY25E, which yields a price of INR 3,191 per share(Earlier target price of INR 3,790 per share), thus maintaining ‘BUY’ recommendation.
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