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ALKYLAMINE - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.6

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.6

Stock Code ALKYLAMINE Market Cap 6,927 Cr. Current Price 1,352 ₹ High / Low 2,449 ₹
Stock P/E 38.3 Book Value 282 ₹ Dividend Yield 0.74 % ROCE 18.7 %
ROE 14.0 % Face Value 2.00 ₹ DMA 50 1,484 ₹ DMA 200 1,723 ₹
Chg in FII Hold 0.01 % Chg in DII Hold 0.13 % PAT Qtr 42.3 Cr. PAT Prev Qtr 42.9 Cr.
RSI 40.1 MACD -66.6 Volume 96,293 Avg Vol 1Wk 94,652
Low price 1,212 ₹ High price 2,449 ₹ PEG Ratio -6.37 Debt to equity 0.00
52w Index 11.3 % Qtr Profit Var -3.43 % EPS 35.3 ₹ Industry PE 25.7

📊 Financials

  • Revenue & Profitability: PAT declined slightly from ₹42.9 Cr. to ₹42.3 Cr., showing -3.43% variation. EPS at ₹35.3 is modest relative to valuation.
  • Margins & Returns: ROCE at 18.7% and ROE at 14.0% are decent but below top-tier benchmarks.
  • Debt & Liquidity: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, ensuring financial stability.
  • Cash Flow: Dividend yield of 0.74% provides modest shareholder returns.

💹 Valuation

  • P/E Ratio: 38.3 vs Industry PE of 25.7 — trading at a premium valuation.
  • P/B Ratio: Current price ₹1,352 vs Book Value ₹282 — ~4.8x book value, moderately expensive.
  • PEG Ratio: -6.37 — negative PEG indicates poor growth outlook relative to valuation.
  • Intrinsic Value: Current price is above fair value, offering limited margin of safety.

🏢 Business Model & Competitive Advantage

  • Specializes in aliphatic amines with strong niche positioning in chemicals.
  • Debt-free structure enhances resilience and financial flexibility.
  • Moderate returns suggest limited competitive edge compared to larger peers.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range between ₹1,210 – ₹1,300, near its 52-week low.
  • Long-Term Holding: Fundamentals are average, valuations stretched. Suitable for cautious accumulation on dips with long-term horizon.

✅ Positive

  • Debt-free balance sheet ensures financial stability.
  • DII holdings increased by 0.13%, showing domestic institutional confidence.
  • EPS of ₹35.3 reflects steady earnings capacity.

⚠️ Limitation

  • High P/E ratio (38.3) compared to industry average.
  • Negative PEG ratio (-6.37) indicates poor growth outlook.
  • Quarterly PAT decline shows earnings weakness.

📉 Company Negative News

  • RSI at 40.1 and MACD negative (-66.6) reflect bearish technical signals.
  • Quarterly profit variation (-3.43%) indicates stagnation in earnings.

📈 Company Positive News

  • Debt-free balance sheet enhances resilience.
  • FII holdings increased slightly (+0.01%), showing foreign investor interest.
  • DII holdings increased, reflecting domestic institutional confidence.

🏭 Industry

  • Chemicals sector benefits from industrial demand and specialty applications.
  • Industry PE at 25.7 is lower than company’s valuation, highlighting relative overpricing.

🔎 Conclusion

ALKYLAMINE shows moderate fundamentals with debt-free stability and steady earnings, but suffers from high valuations and weak growth outlook. While institutions show cautious confidence, profitability stagnation raises concerns. Best strategy: accumulate cautiously near ₹1,210–₹1,300 and hold for long-term gains, but monitor growth trajectory closely.

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