ALKYLAMINE - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.1
| Stock Code | ALKYLAMINE | Market Cap | 8,071 Cr. | Current Price | 1,575 ₹ | High / Low | 2,449 ₹ |
| Stock P/E | 44.7 | Book Value | 282 ₹ | Dividend Yield | 0.63 % | ROCE | 18.7 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,628 ₹ | DMA 200 | 1,818 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 42.3 Cr. | PAT Prev Qtr | 42.9 Cr. |
| RSI | 48.9 | MACD | -9.78 | Volume | 37,133 | Avg Vol 1Wk | 56,094 |
| Low price | 1,507 ₹ | High price | 2,449 ₹ | PEG Ratio | -7.42 | Debt to equity | 0.00 |
| 52w Index | 7.26 % | Qtr Profit Var | -3.43 % | EPS | 35.3 ₹ | Industry PE | 27.4 |
📊 Analysis: ALKYLAMINE shows moderate fundamentals. ROE at 14.0% and ROCE at 18.7% indicate average capital efficiency. Debt-to-equity is 0.00, making the company debt-free and financially stable. However, the P/E of 44.7 is significantly higher than the industry average of 27.4, suggesting overvaluation. EPS of ₹35.3 is modest relative to price, and dividend yield of 0.63% is low, offering limited income support. The PEG ratio is negative (-7.42), signaling distorted valuation relative to growth. Quarterly PAT declined slightly (-3.43%), raising concerns about earnings consistency. Technicals are weak: MACD negative (-9.78), RSI neutral (48.9), and price below DMA 200, indicating bearish undertone.
💡 Entry Price Zone: Ideal accumulation range is between ₹1,500 – ₹1,550, closer to the 52-week low, offering better valuation comfort.
⏳ Exit / Holding Strategy: If already holding, maintain a medium-term horizon (2–3 years) but monitor earnings recovery closely. Exit or partial profit booking should be considered near ₹2,300–₹2,400 resistance levels if profitability does not improve significantly.
Positive ✅
- Debt-free company (Debt-to-equity 0.00).
- ROCE of 18.7% indicates moderate efficiency.
- Stable EPS of ₹35.3 supports profitability.
- FII and DII holdings increased slightly, showing institutional confidence.
Limitation ⚠️
- High P/E (44.7) compared to industry average (27.4).
- Weak ROE (14.0%) and moderate ROCE (18.7%).
- Negative PEG ratio (-7.42) signals poor valuation relative to growth.
- Dividend yield of 0.63% is modest.
- Quarterly PAT declined (-3.43%), raising concerns about earnings stability.
- Weak technicals: MACD negative, price below DMA 200.
Company Negative News 📉
- Recent quarterly profit decline (-3.43%) indicates operational weakness.
Company Positive News 📈
- Debt-free balance sheet provides financial resilience.
- Institutional confidence with slight increase in FII and DII holdings.
Industry 🌐
- Industry P/E at 27.4 indicates moderate valuation levels.
- Chemicals sector benefits from long-term demand in pharma and industrial applications.
Conclusion 📝
ALKYLAMINE is a moderately attractive stock with debt-free status and fair operational efficiency, but faces challenges with high valuations, weak ROE/ROCE, and declining quarterly profits. Investors should accumulate near ₹1,500–₹1,550 for better risk-adjusted returns. Existing holders should maintain a 2–3 year horizon, with partial profit booking near ₹2,300–₹2,400 resistance levels if earnings recovery does not materialize.