ALKYLAMINE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

Here’s a detailed breakdown of Alkyl Amines Chemicals Ltd (ALKYLAMINE)

🧾 Core Financials

Profitability & Growth

PAT grew modestly from ₹46.0 Cr to ₹49.4 Cr — a 1.17% QoQ increase, indicating flat growth.

EPS: ₹36.5 — decent, but not strong enough to justify current valuation.

ROE: 14.0% and ROCE: 18.7% — healthy, but not industry-leading.

Debt & Liquidity

Debt-to-equity: 0.00 — debt-free, a major strength for long-term resilience.

Dividend Yield: 0.48% — modest, adds shareholder value.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 56.8 33.9 Overvalued

P/B Ratio ~7.57 ~3.5 High premium to book value

PEG Ratio -9.44 ~1 Not meaningful due to weak growth

Intrinsic Value ~₹1,700–₹1,800 — Overpriced vs fundamentals

The valuation is stretched, with PEG indicating poor earnings momentum and limited upside.

🏢 Business Model & Competitive Edge

Core Operations: Manufacturing of aliphatic amines and derivatives used in pharmaceuticals, agrochemicals, and water treatment.

Strengths

Niche chemical portfolio with high entry barriers.

Strong export presence and technical expertise.

Risks

Flat profit growth and high valuation.

Limited volume and weak momentum (MACD: -18.8), suggesting investor caution.

📉 Technical & Entry Zone

Current Price: ₹2,074

DMA 50/200: ₹2,100 / ₹2,014 — trading near key averages.

RSI: 48.0 — neutral zone.

MACD: -18.8 — bearish crossover.

Suggested Entry Zone: ₹1,700–₹1,850 range, ideally near 52-week low of ₹1,508 or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to specialty chemicals.

Avoid fresh entry unless valuation cools and earnings growth resumes.

Ideal for long-term only if

PAT growth accelerates above 15% CAGR.

ROE improves above 18% and PEG normalizes below 2.

Would you like a peer comparison with Balaji Amines or a breakdown of Alkyl’s export revenue mix?

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