KRChoksey Sees 7% UPSIDE in Balaji Amines LTD Significant Drop in
KRChoksey Sees 7% UPSIDE in Balaji Amines LTD Significant Drop in
KRChoksey Sees 7% UPSIDE in Balaji Amines LTD Significant Drop in
Balaji Amines Ltd. Significant drop in top line and profits due to multiple headwinds for the business
CMP Target Potential Upside Market Cap (INR Mn) Recommendation Sector
INR 2,030 INR 2,172 7.0% INR 65,749 ACCUMULATE Specialty Chemicals
• Adj EBITDA declined by 68.9% YoY and 45.1% QoQ to INR 538 Mn while for H1FY24 Adj EBITDA declined by 60.9% YoY to INR 1,518 Mn. Adj EBITDA margin contracted
1,345 bps YoY and 701 bps QoQ to 14.1% while for H1FY24 Adj EBITDA margin contracted 1191 bps to 18.0%. This was due to intense competition from China and usage of
high cost inventory.
• PAT declined by 62.5% YoY and 34.2% QoQ to INR 347 Mn while for H1FY24 PAT declined by 59.4% YoY to INR 874 Mn. PAT margin contracted 563 bps YoY and 225 bps
QoQ to 9.1% while for H1FY24 PAT margin contracted 625 bps to 10.4%. This quarterly decline is due to weak operating performance.
Bloomberg Code BLA IN P/E (x) 27.6 17.8 20.2 29.0 20.6
Nov-21
Nov-22
Nov-23
May-21
May-22
May-23
Aug-21
Aug-22
Aug-23
Feb-21
Feb-22
Feb-23
-2.1% -0.9%
Promoters 53.7 53.7 53.7
Others 40.9 41.6 41.5 Revenue CAGR between FY23 PAT CAGR between FY23 and
Total 100.0 100.0 100.0 and FY25E FY25E
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
Q2FY24 Analysis
Particulars (INR Mn) Q2FY24 Q1FY24 Q2FY23 QoQ Y oY H1FY24 H1FY23 YoY
Revenue from Operations 3,805 4,637 6,276 -17.9% -39.4% 8,442 12,977 -34.9%
Total Expenditure 3,268 3,656 4,545 -10.6% -28.1% 6,924 9,098 -23.9%
Cost of Raw Materials 1,913 2,561 2,872 -25.3% -33.4% 4,473.4 6,794.1 -34.2%
Employee Cost 193 179 213 8.2% -9.2% 371.8 474.9 -21.7%
Other Expenses 851 917 1,078 -7.2% -21.0% 1,768.4 2,177.0 -18.8%
Adj EBITDA 538 980 1,731 -45.1% -68.9% 1,518 3,879 -60.9%
Adj EBITDA Margin (%) 14.1% 21.1% 27.6% -701 bps -1345 bps 18.0% 29.9% -1191 bps
PBT before Exceptional 480 904 1,618 -46.9% -70.3% 1,384 3,668 -62.3%
PAT Margin (%) 9.1% 11.4% 14.8% -225 bps -563 bps 10.4% 16.6% -625 bps
Adj. PAT 347 527 926 -34.2% -62.5% 874 2,155 -59.4%
Adj. PAT Margin (%) 9.1% 11.4% 14.8% -225 bps -563 bps 10.4% 16.6% -625 bps
Adj. EPS 10.7 16.3 28.6 -34.2% -62.5% 27.0 66.5 -59.4%
Source: Company, KRChoksey Research
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
11,775 14,419
10,236 9,285
8,092 8,288 10,236 9,285
6,757 8,092 7,769
6,310
Amines Amine derivatives Specialty chemical Amines Amine derivatives Specialty chemical
KEY FINANCIALS
Exhibit 1: Profit & Loss Statement
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
CMP
Date TP (INR) Recommendation Our Rating Upside
(INR)
22-Nov-23 2,030 2,172 ACCUMULATE Buy More than 15%
04-Sept-23 2,229 2,803 BUY
Accumulate 5% – 15%
25-May-23 2,170 3,191 BUY
13-Feb-23 2,180 3,790 BUY Hold 0 – 5%
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Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
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Thomson Reuters, Factset and Capital IQ