HDFC Securities' research report on Alkyl Amines
We believe that the current valuation already factors in positives from potential volume growth, after doubling of the acetonitrile plant capacity and ~40% additional capacities of the aliphatic amines plant. EBITDA/APAT were 14/20% below our estimates, owing to higher-than-expected raw material cost, higher-than-anticipated depreciation, and lower-than-anticipated other income.
Outlook
We maintain REDUCE on Alkyl Amines (AACL) with a price target of INR 2,294 (WACC 12%, terminal growth 5%). The stock is currently trading at ~37x FY25E EPS.
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