Alkyl Amines Q1 Results Review - Robust Quarter; Expect Momentum To Continue: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alkyl Amines Chemical Ltd. Q1 FY25 revenue declined 2% YoY to Rs 4 billion, with gross margin of 47% (up 230 basis points YoY) and Ebitdam of 19.8%. Profit after tax stood at Rs 489 million versus our estimate of Rs 407 million.A new Ethylamines plant was commissioned in FY24, which clocked 60% utilization in H2 FY24. Alkyl Amines has a larger market share versus competition, and with steady growth in demand (5-7% every year) and improved margin, the management is confident of maintaining its market share despite capacity expansions by competition.Alkyl Amines continues to maintain its market share in ACN. The company has applied for an anti-dumping duty Add and expects interim relief in FY25, which could lead to a market share gain for Alkyl Amines Chemical. Currently the impact from imports is to the tune of 15-20% of revenues from ACN.We keep our estimates unchanged. We expect a compound annual growth rate of 22%/33%/38% in revenue/Ebitda/earning per share during FY24-26 (due to a lower base in FY24). The stock is trading at 36.8 times FY26E earning per share of Rs 55.8 and 23.2 times FY26E enterprise value/Ebitda. We reiterate our 'Neutral' rating on the stock and value it at 35 times FY26E earning per share to arrive at our target price of Rs 1,955..Click on the attachment to read the full report:.Passive Foreign Flows Into India Via EM Indices To Rise, Says Macquarie's Aditya Suresh.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alkyl Amines Q1 Results Review - Robust Quarter; Expect Momentum To Continue: Motilal Oswal

The company is venturing into new specialty products that are likely to improve its margins, says the brokerage.

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Alkyl Amines Q1 Results Review - Robust Quarter; Expect Momentum To Continue: Motilal Oswal

The company is venturing into new specialty products that are likely to improve its margins, says the brokerage.

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