ALKYLAMINE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ALKYLAMINE | Market Cap | 7,754 Cr. | Current Price | 1,516 ₹ | High / Low | 2,449 ₹ |
| Stock P/E | 42.9 | Book Value | 282 ₹ | Dividend Yield | 0.66 % | ROCE | 18.7 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,443 ₹ | DMA 200 | 1,647 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | 42.3 Cr. | PAT Prev Qtr | 42.9 Cr. |
| RSI | 59.6 | MACD | 42.2 | Volume | 39,445 | Avg Vol 1Wk | 50,370 |
| Low price | 1,212 ₹ | High price | 2,449 ₹ | PEG Ratio | -7.13 | Debt to equity | 0.00 |
| 52w Index | 24.6 % | Qtr Profit Var | -3.43 % | EPS | 35.3 ₹ | Industry PE | 28.9 |
📊 Financials: ALKYLAMINE shows decent fundamentals with ROE at 14.0% and ROCE at 18.7%, reflecting moderate efficiency. Debt-to-equity ratio of 0.00 highlights a debt-free balance sheet. EPS of ₹35.3 supports earnings stability, though quarterly PAT declined slightly from ₹42.9 Cr. to ₹42.3 Cr. (-3.43%).
💹 Valuation: Current P/E of 42.9 is significantly above industry average (28.9), indicating premium valuation. PEG ratio of -7.13 highlights weak growth prospects relative to valuation. P/B ratio (~5.4) is stretched compared to book value ₹282, limiting intrinsic value comfort.
🏢 Business Model: ALKYLAMINE operates in specialty chemicals, benefiting from industrial demand and niche product offerings. Competitive advantage lies in debt-free structure and established market presence. However, stagnant profits and stretched valuations reduce margin of safety.
📈 Entry Zone: Attractive entry closer to ₹1,400–1,450, near DMA 50 (₹1,443) and below current price ₹1,516. This range offers better valuation comfort and aligns with technical support.
📌 Long-Term Holding: Suitable for cautious long-term investors if accumulated at lower levels. Strong balance sheet supports holding, but weak growth indicators and premium valuations require strict monitoring.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00)
- Moderate ROCE (18.7%) and ROE (14.0%)
- EPS of ₹35.3 supports earnings consistency
- MACD (42.2) and RSI (59.6) show bullish momentum
Limitation
- High P/E (42.9) vs industry average (28.9)
- Negative PEG ratio (-7.13) signals weak growth prospects
- Quarterly PAT decline (-3.43%)
- Volume below weekly average, limiting liquidity
Company Negative News
- No major negative news reported, but profit stagnation and valuation concerns persist
Company Positive News
- Debt-free structure provides financial stability
- Stable EPS and dividend yield (0.66%) support investor confidence
Industry
- Chemicals sector benefiting from industrial demand
- Peers trading at lower valuations, making ALKYLAMINE relatively expensive
Conclusion
ALKYLAMINE demonstrates moderate efficiency with a debt-free balance sheet and stable earnings, but stretched valuations and weak growth prospects limit upside. Entry is recommended near ₹1,400–1,450 for better margin of safety. Long-term investors should hold cautiously, booking partial profits near ₹1,600–1,700 resistance levels.