Balaji Amines Opportunity

Hi Guys,

I’ve a question to the senior folks who are tracking the Amines Industry. I have recently started tracking these businesses.

When I look at the metrics I see Balaji is doing very well over Alkyl in terms of margins. However, in last couple of years Balaji has depressed CFO/EBITDA conversion and poor Working Capital management due to high inventory and receivables. But, overall Balaji performing way better than Alkyl.

Do we know the reason why Alkyl commands higher premium over Balaji? Because I see all the Metrics Mcap/Sales, EV/EBITDA, MCap/CFO. It is trading at higher valuation?

Any thoughts please.

Thanks.