ALKYLAMINE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ALKYLAMINE | Market Cap | 8,258 Cr. | Current Price | 1,616 ₹ | High / Low | 2,449 ₹ |
| Stock P/E | 45.7 | Book Value | 282 ₹ | Dividend Yield | 0.62 % | ROCE | 18.7 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,630 ₹ | DMA 200 | 1,820 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 42.3 Cr. | PAT Prev Qtr | 42.9 Cr. |
| RSI | 54.3 | MACD | -10.9 | Volume | 1,54,131 | Avg Vol 1Wk | 55,940 |
| Low price | 1,507 ₹ | High price | 2,449 ₹ | PEG Ratio | -7.59 | Debt to equity | 0.00 |
| 52w Index | 11.6 % | Qtr Profit Var | -3.43 % | EPS | 35.3 ₹ | Industry PE | 25.9 |
📊 Financials: ALKYLAMINE shows moderate profitability with ROCE at 18.7% and ROE at 14.0%. Quarterly PAT slipped slightly from ₹42.9 Cr. to ₹42.3 Cr., reflecting earnings stagnation. Debt-to-equity is 0.00, indicating a debt-free balance sheet. EPS of ₹35.3 is modest relative to its market cap of ₹8,258 Cr.
💹 Valuation: The stock trades at a P/E of 45.7, well above the industry average of 25.9, suggesting overvaluation. P/B ratio is ~5.7 (1616/282), which is expensive compared to peers. PEG ratio of -7.59 highlights valuation concerns due to inconsistent growth. Dividend yield of 0.62% provides limited income support.
🏢 Business Model & Competitive Advantage: ALKYLAMINE operates in specialty chemicals, focusing on aliphatic amines used in pharmaceuticals, agrochemicals, and water treatment. Its competitive advantage lies in niche product expertise and strong domestic presence. However, profitability volatility and stretched valuations limit investor comfort.
📈 Entry Zone: Technicals show RSI at 54.3 (neutral) and MACD negative, with price below DMA 200 but near DMA 50. Accumulation may be considered near ₹1,500–1,580 for long-term investors. Current valuations are stretched, so cautious entry is advised.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Stable PAT performance despite industry pressures.
- Strong niche positioning in specialty chemicals.
Limitation
- High P/E ratio (45.7) compared to industry average (25.9).
- P/B ratio (~5.7) indicates expensive valuation.
- Negative PEG ratio (-7.59) highlights growth concerns.
Company Negative News
- Quarterly PAT decline (-3.43%) shows earnings weakness.
- Stock trading below DMA 200, reflecting weak momentum.
Company Positive News
- FII holdings increased slightly (+0.01%), showing foreign investor interest.
- DII holdings increased (+0.13%), reflecting domestic institutional support.
Industry
- Specialty chemicals sector benefits from rising demand in pharma and agrochemicals.
- Industry P/E at 25.9 is lower than ALKYLAMINE