Neutral Alkyl Amines Chemicals; target of Rs 1610: Motilal Oswal

Motilal Oswal Neutral rating on Alkyl Amines Chemicals with a target price of Rs 1610 in its research report dated April 09, 2025.

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April 10, 2025 / 14:47 IST

Neutral

26 Aug, 2025 12:21

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Motilal Oswal's research report on Alkyl Amines Chemicals

The anti-dumping duty (ADD) on Acetonitrile (ACN) imports from China, Russia, and Taiwan may offer Alkyl Amines Chemicals (AACL) a margin and market share upside from 2HFY26. However, the near-term impact is limited due to the pre-duty stocking. China’s continued access to SEZ markets and ongoing MIPA competition may partially offset the benefits. AACL is diversifying its product mix to reduce reliance on any single offering while expanding capacity through debottlenecking, a new Ethylamine plant, and repurposing assets for Methylamines. It faces competition, especially from Chinese players and domestic peers, but aims to maintain an edge through efficiency and quality.

Outlook

AACL expanded aliphatic amines capacity by ~30% in FY24 and is focusing on margin-accretive specialty products despite near-term demand headwinds. With a projected 15% revenue and 20% EPS CAGR over FY25–27, risks include intense competition and pricing pressure, while the recent ADD implementation could offer potential upside. We reiterate our Neutral rating with a TP of INR1,610 based on 30x FY27E EPS.

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