Shares of this methylamines manufacturing company jumped 4 percent in Thursday’s trading session after receiving a grant from the Government of Maharashtra. In one month, the shares have delivered more than 30 percent returns to its investors.
With a market capitalization of Rs. 8,642 crores, the shares of Balaji Amines Ltd started Thursday’s trading session on a higher note at Rs. 2,608 compared to its previous close of Rs. 2,591. The shares hit a high of Rs. 2,710, gaining around 4 percent and currently trading at Rs. 2,671.50 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the Industries, Energy and Labour Department, Government of Maharashtra has approved conferring the status of a mega project to the expansion project for the manufacture of speciality chemicals by Balaji Speciality Chemicals Limited, to one of their subsidiary company at MIDC under the Packaged Scheme of Incentives (PSI), 2019, with a proposed investment of Rs. 750 crores.
Looking at the company’s financial statement, the revenue decreased by 18 percent from Rs. 464 crores in the June quarter to Rs. 381 crores during the September quarter. In addition, the net profits declined by 47 percent from Rs. 68 crores to Rs. 36 crores during the same timeframe.
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 Methylamines production in India with an installed capacity of 48,000 TPA.
Looking at the company’s important financial ratios, the return on equity stood at 28.94 percent during FY22-23 and the return on capital employed was recorded at 39.08 percent in the same period. Furthermore, the company is almost debt-free with a debt-equity ratio of 0.04.
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
