Shares of this smallcap company surged 15 percent in Wednesday’s trading session after announcing quarterly results and a 550 percent dividend.
With a market capitalization of Rs. 7,472 crores, the shares of Balaji Amines Ltd started Wednesday’s trading session on a flatter note at Rs. 2,090.30. During the trading session, the shares hit a high of Rs. 2,242, gaining around 15 percent and closed the day at Rs. 2,296.90 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased by 8 percent from Rs. 383.35 crores during the December quarter to Rs. 413.93 crores in the March quarter. In addition, the net profits zoomed by 31 percent from Rs. 55.77 crores to Rs. 72.48 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue decreased by 12 percent from Rs. 471.39 crores during Q4FY23 to Rs. 413.93 crores in Q4FY24. On the other hand, the net profits surged by 31 percent from Rs. 55.21 crores to Rs. 72.48 crores during the same period.
Additionally, the Board of Directors of the company have recommended a final dividend of Rs. 11 per equity share i.e. 550 percent on the face value of Rs. 2 per share and the same will be payable after it is approved by the shareholders.
As per the latest data, the company has planned to undertake capex for a new product, namely n-butylamine having a capacity of 15,000 TPA under Phase-2 expansion. Moreover, the company is a market leader in the Indian market for Methylamines production, boasting an operational capacity of 48,000 metric tons per annum.
Balaji Amines Ltd maintains an extensive clientele encompassing diverse sectors, geographical regions, and product categories. Notable clients within its portfolio include Sun Pharmaceuticals, Deepak Nitrite, Rallis India, Thermax, and Dr Reddy’s Laboratories, among numerous others.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 28.93 percent and a return on capital employed (RoCE) of 38.97 percent for the period spanning FY22-23. In addition, the net profit for FY22-23 was 17.22 percent.
Headquartered in Solapur, Balaji Amines was incorporated in 1988. The company manufactures Methylamines, Ethylamines, Derivatives of specialty chemicals and Pharma Excipients. It is one of the largest manufacturers of aliphatic amines in India.
Written By Vaibhav Patil
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