BALAJI AMINES LTD - Q1 FY 21 RESULTS REVIEW - DT 30 09 20

 

BALAJI AMINES LTD

Q1 FY 21 RESULTS REVIEW

DT 30 09 20

 

COMPANY OVERVIEW                                   

Balaji Amines (BAL) Ltd is engaged in the manufacturing of methylamines, ethylamines, derivatives of specialty chemicals and natural products.

They also manufacture derivatives, which are down stream products for various Pharma /Pesticide industries apart from user specific requirements.

Their product spectrum includes Amines-under which the following are manufactured Monomethylamine, Dimethylamine, Trimethylamine, Monoethylamine, Diethylamine, Triethylamine, Dimethyl Amino Ethanol, Diethyl Amino Ethanol And Mono Methyl Amino Ethanol; Speciality Chemicals-under which they manufacture N-Metthyl Pyrrolidone, Morpholine, Diethyl Hydroxylamine ,etc; Derivatives-under which they manufacture Di-Methyl Acetamide, Di-Methyl Amine Hydrochloride, Tri-Methyl Amine Hydrochloride, Di-Ethyl Amine Hydrochloride, Tri-Ethyl Amine Hydrochloride, Benzyl Tri Ethyl Ammonium Chloride, Mono Methyl Urea, Di-Methyl Urea, Choline Chloride,etc & Natural Products -which includes Camptothecin, Coleus Forskohlii, Calcium Sennosoid and Solanesol.

Management                  

A Prathap Reddy         Executive Chairman   

D Ram Reddy              Managing Director      

N Rajeshwar Reddy            Joint Managing Director    

 

Q1 RESULTS REVIEW

Balaji Amines (in Rs. Cr.)	Jun '20	Mar '20	Jun '19	YOY	QOQ
Net Sales/Income from operations	222.91	258.03	222.98	-0.03	-13.61
Consumption of Raw Materials	112.76	143.13	141.73	-20.44	-21.22
Increase/Decrease in Stocks	5.59	-5.9	-11.51	-148.57	-194.75
Employees Cost	11.22	13.89	10.78	4.08	-19.22
Depreciation	7.93	10.12	5.71	38.88	-21.64
Other Expenses	40.11	51.27	44.46	-9.78	-21.77
P/L Before Other Inc., Int., Excpt. Items & Tax	45.29	45.51	31.8	42.42	-0.48
Other Income	1.28	1.56	1.41	-9.22	-17.95
P/L Before Int., Excpt. Items & Tax	46.57	47.07	33.2	40.27	-1.06
Interest	4.32	6.3	3.25	32.92	-31.43
P/L Before Tax	42.25	40.77	29.95	41.07	3.63
Tax	10.67	11.21	11.47	-6.97	-4.82
Net Profit/(Loss) For the Period	31.58	29.56	18.48	70.89	6.83
Minority Interest	1.38	1.26	--		9.52
Net P/L After M.I & Associates	32.96	30.82	18.48	78.35	6.94
Equity Share Capital	6.48	6.48	6.48	0	0
Reserves Excluding Revaluation Reserves	651.66	567.98	567.53	14.82	14.73
Basic EPS	10.17	9.51	5.7	78.42	6.94
MP	809
PE	19.88692
VOLUME	66,548
52 Wk L/H	204.1	995

 

 

Market Depth

BUY 8049

SELL 4125

Annual	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	935	943	863	670	643
Other Income	5	4	4	4	2
Total Income	940	947	867	675	645
Total Expenditure	786	769	692	536	535
EBIT	154	178	174	138	110
Interest	23	13	9	12	22
Tax	33	47	52	43	30
Net Profit	97	117	113	82	57

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	32.34	36.27	34.93	25.42	17.78
Diluted Eps (Rs.)	32.34	36.27	34.93	25.42	17.78
Book Value [Excl. Reval Reserve]/Share (Rs.)	206.28	182.71	149.71	111.87	86.48
Dividend/Share (Rs.)	3.2	2.8	2.6	2.2	2
Face Value	2	2	2	2	2
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	19.85	20.95	22.41	23.5	20.13
Operating Margin (%)	16.47	18.88	20.17	20.56	17.12
Net Profit Margin (%)	10.41	12.41	13.1	12.28	8.95
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	14.8	20.38	24.23	22.72	20.56
ROCE (%)	18.16	24.14	29.48	31.63	14.8
Return On Assets (%)	8.75	11.19	13.34	12.96	9.52
Liquidity Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Current Ratio (X)	1.75	1.46	1.41	1.4	1.14
Quick Ratio (X)	1.33	0.93	1.06	0.91	0.78
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.37	0.33	0.3	0.23	0.53
Interest Coverage Ratios (%)	6.69	13.67	19.28	10.66	4.97
Turnover Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Asset Turnover Ratio (%)	84.06	90.16	101.86	105.58	106.35
Inventory Turnover Ratio (X)	8.47	5.78	9.69	6.77	8.24
Valuation Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
P/E (x)	6.09	8.84	7.15	11.54	10.93
P/B (x)	1.24	2.76	3.9	3.39	2.06
EV/EBITDA (x)	5.68	8.97	10.09	8.31	5.54
P/S (x)	0.87	1.68	2.11	1.83	0.9
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	3.16	19.29	16.63	5.05	2.01
3 Yr CAGR Net Profit (%)	0.25	17.47	35.91	53.41	35.2

 

Historical Prices
	3 Y BEF	Current Price	%Gain / Loss
Open Price	329.6	815.5	147.42
	2 YR BEF
Open Price	490	815.5	66.43
	1 YR BEF
Open Price	354.8	815.5	129.85
	3 M BEF
Open Price	529.55	815.5	54

 

Dividend Summary

For the year ending March 2020 Balaji Amines has declared an equity dividend of 160.00% amounting to Rs 3.2 per share. At the current share price of Rs 815.25 this results in a dividend yield of 0.39%.

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

 

SHAREHOLDING
Standalone	Jun-20	Mar-20	Dec-19	Sep-19
Promoters	53.7	53.67	53.64	53.61
Pledged	0	0	0	0
FII/FPI	1.74	1.72	1.64	1.59
Total DII	4.98	4.35	4.7	4.48
Fin.Insts	0.04	0.04	0.05	0.07
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	4.94	4.31	4.65	4.41
Others	39.58	40.27	40.01	40.31
Total	100	100.01	99.99	99.99

 

STRENGTHS      

Promoters increasing shareholding        

Growth in Net Profit with increasing Profit Margin (QoQ)           

Company with Low Debt          

Increasing profits every quarter for the past 2 quarters            

Book Value per share Improving for last 2 years         

Company with Zero Promoter Pledge            

FII / FPI or Institutions increasing their shareholding         

WEAKNESSES          

Bearish Engulfing (Bearish Reversal)            

Inefficient use of capital to generate profits - RoCE declining in the last 2 years         

Inefficient use of shareholder funds - ROE declining in the last 2 years             

Inefficient use of assets to generate profits - ROA declining in the last 2 years        

Declining Net Cash Flow : Companies not able to generate net cash       

Opportunities (2) Brokers upgraded recommendation or target price in the past three months              

Opportunities          

Brokers upgraded recommendation or target price in the past three months        

Highest Recovery from 52 Week Low            

Threats (0)       

NIL       

CHARTS          

5 YEARS       

Jan-16   LOW POINT  

Aug-11   HIGHER LOW POINT  

Jan-18   A HIGH POINT     

AUG 22019    A LOW POINT      

Mar-20   ANOTHER LOW POINT

       THEN CURVE UPWARDS TILL NOW  

             

6 MONTHS    UPWARD CURVE  

             

3 MONTHS    FROM AUG UPWARD LIFE  

             

1 MONTH      UP,DOWN,UP DOWN  

             

MONTHLY TECHNICAL RATING          

Very Bullish         

             

Valuation       

Market Cap (Rs Cr.)    2,640.68      

P/E         20.53           

Book Value (Rs)          206.06         

Dividend (%)              160       

Industry P/E                33.65           

EPS (TTM)                   39.64           

P/C                             17.28           

Price/Book                  3.96             

Dividend Yield.(%)      0.39             

Face Value (RS)          2