ALKYLAMINE - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.4

📊 Fundamental Analysis Summary

Alkyl Amines (ALKYLAMINE) is a high-quality specialty chemical stock with exceptional capital efficiency and strong long-term growth potential. Despite a high P/E ratio, its PEG ratio and ROE/ROCE justify the premium valuation. The company is well-positioned for long-term compounding, especially given its niche leadership and consistent profitability.

Metric Value Interpretation

P/E Ratio 59.5 High — priced for growth, but justified by ROE and PEG

PEG Ratio 1.10 Fairly valued — growth expectations aligned with price

ROE / ROCE 41.4% / 41.3% Outstanding — top-tier capital efficiency

Dividend Yield 0.45% Low — reinvestment-focused growth strategy

Debt-to-Equity 0.16 Low leverage — financially sound

EPS ₹39.5 Strong earnings — supports valuation

PAT Growth (QoQ) Flat Stable — consistent earnings

Book Value ₹105 Price-to-book ~21× — very high, but justified by ROE

RSI / MACD 49.3 / +16.1 RSI neutral; MACD positive — mild bullish momentum

DMA 50 / 200 ₹2,132 / ₹1,977 Price above both — bullish trend intact

52W Price Range ₹1,508 – ₹2,499 Near upper range — not ideal for fresh entry

FII/DII Change +0.03% / +0.42% Mild institutional accumulation — positive sentiment

📉 Ideal Entry Price Zone

Given technical and valuation factors

Entry Zone: ₹2,050 – ₹2,150

Near 50-DMA and below RSI 50 — good accumulation zone.

Avoid aggressive entry above ₹2,250 unless earnings accelerate.

🧭 Exit Strategy & Holding Period

Holding Period

5+ years — ideal for compounding returns through high ROE and niche market dominance.

Exit Strategy

Consider partial exit if PEG rises above 2.0 or ROE drops below 30%.

Reassess if price exceeds ₹2,500 without corresponding EPS growth or PAT momentum.

Key Metrics to Monitor

ROCE consistently above 35%

PEG ratio staying below 1.5

PAT growth > 10% YoY

EPS trending above ₹45+

🧠 Final Thoughts

Alkyl Amines is a textbook example of a high-ROE compounder in the specialty chemicals space. While valuation is rich, its growth quality and capital efficiency make it a strong long-term candidate. Ideal for investors seeking wealth creation through consistent performance rather than dividends.

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