ALKYLAMINE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Here’s a well-rounded assessment of Alkyl Amines Chemicals Ltd. (ALKYLAMINE) — a specialty chemicals leader with stellar return metrics, modest leverage, and resilient margin dynamics.

🔬 Core Financial Strength

ROE: 41.4% & ROCE: 41.3% — exceptional efficiency; among the best in chemicals.

EPS: ₹39.5 — solid earnings base, supports premium valuation.

PAT Qtr: ₹49.2 Cr (flat from ₹49.4 Cr) — stability despite industry cyclicality.

Debt-to-Equity: 0.16 — conservative gearing, financial discipline in place.

Dividend Yield: 0.45% — modest payout; company prefers reinvestment.

📊 Valuation Metrics

Metric Value Interpretation

P/E Ratio 59.5 ⚠️ Expensive vs Industry PE of 34.4

P/B Ratio ~21.0 Significantly high — reflects growth expectations

PEG Ratio 1.10 Reasonable — valuation aligns with earnings growth

Intrinsic Value Slightly Below CMP Market pricing in future expansion

🧠 Business Model & Moat

Focuses on amines and amine derivatives, widely used in pharma, agrochem, and paints.

Dominates domestic market; diversified export base with technical barriers to entry.

Long-term contracts and in-house R&D bolster competitive advantage.

Steady institutional interest

DII ↑ 0.42%, FII ↑ 0.03% — quiet accumulation underway.

📉 Technical & Sentiment Indicators

RSI: 49.3 — neutral zone, no oversold/overbought signal.

MACD: +16.1 — bullish crossover, momentum building.

CMP ₹2,207 is

Above DMA 50 & DMA 200 — supports positive trend.

Closer to support at ₹2,132, away from peak ₹2,499 — upside remains.

🎯 Entry Zone & Investment Outlook

Entry Zone: ₹2,130–₹2,190 — ideal technical retracement zone.

Long-Term Holding Thesis

Strong economic moat in niche chemicals with high margins.

R&D-led product pipeline and capacity expansion support compounding growth.

Best suited for patient investors targeting growth with moderate volatility.

Want to explore how Alkyl compares with Deepak Nitrite or Navin Fluorine in terms of margin profile, capacity utilization, and valuation trend? I can line up a battle of specialty chem stars 🌟📈.

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