I have been trying to dig deeper into this but there doesn’t seem to be a lot of information available on this.
The directors who quit cited “Personal Reasons” for leaving the company. However the company management later clarified SEBI rules as the reason - “No independent director can serve on the board of the company for more than 10 Years”.
My issues with this explanation is, if it were true why wouldn’t they announce it at the time? This seems like a cover up reason cooked up later.
Although in the recent weeks, I noticed sudden uptick in the stock price without any relevant news about the company. Does this indicate insider buying? We’ll know only when the public shareholding update is available.
It is noteworthy that recently couple of research reports were released on the Global amine market (eg. insightpartners) according to which the industry is slated to grow at 4-7% CAGR between 2023-2033. Balaji Amines being an oligopoly in India along with difficulty of entering in this space by new players (Amines are dangerous chemicals and need specialised handling, making it difficult for new players to enter, also limits options to import as transport becomes expensive) Balaji Amines should benefit in the long run.
Compared to their competitor Alkyl amines, Balaji amines is trading at a lower valuation right now. Given a possibility of Governance issues, it is probably better to keep a low exposure to this stock.
Disc: I am invested in Balaji Amines
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