Shares of Alkyl Amines Chemicals Limited are currently trading at a price of Rs 2,554 and has a market capitalization of Rs 13,041 crores.
The scrip has given multibagger returns of approximately 8,600 percent during a long-term period of ten years ranging from Rs 30 in May 2013 to the current levels. It means that if someone would have invested Rs 1,00,000 into the stock, it would have converted to Rs 86 Lakh within a period of ten years.
2 years back, in July 2021, the stock reached its all-time high of Rs 4,200 levels. The stock’s current price level exhibits a discount of approximately 40 percent from the above-mentioned all-time high levels.
Alkyl Amines Chemicals supplies amines and amine-based chemicals to the agrochemical, pharmaceutical, water treatment, and rubber chemical industries. The company’s product portfolio includes Amine Derivatives, Aliphatic Amines, and Fine Chemicals. It also provides contract services which consist of product and technology development, scale-up services, and manufacturing support services.
Digging into the quarterly numbers reported by the company, the operating revenues increased from Rs 388 crores in the December quarter v/s Rs 412 crores in the quarter ending March 2023. Moreover, the net profit numbers took a shift from Rs 46 crores to Rs 49 crores during the same time period.
On a YoY basis, both the above-mentioned metrics have been successful in showing an upward movement with operating revenues increasing from Rs 1,542 crores during FY21-22 to Rs 1,682 crores in FY22-23 and net profits going up from Rs 225 crores to Rs 229 crores keeping the horizon the same.
After a consistent increase over the years, the company, lately, has seen some down movements as far as the profitability ratios are concerned. The return on equity (ROE) went down from 44.6 percent during FY20-21 to 25.32 percent in FY21-22. Moreover, the return on capital employed (ROCE) reduced from 55.69 percent to 33.04 percent.
On a positive note, the debt-to-equity ratio of the company went down from 0.06 in FY20-21 to 0.02 in FY21-22.
The latest shareholding data represents that the promoters hold a 71.99 percent stake in the company, and Foreign Institutional Investors (FIIs) hold a 2.79 percent stake in the company.
Written by Amit Madnani
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