Balaji Amines Ltd Research Report By Nirmal Bang

For FY16-18E we expect the company’s sales to grow by 17.4% and PAT by 42.6% (as interest cost if likely to come down and with no major capex lined up depreciation is likely to be stable at current levels). BAL is leading amine player and enjoys handsome market share in its basket of products. It is consistent dividend paying company and is poised for good growth and is available at attractive valuations. We believe there is scope of re-rating of the stock given the improvement in ROCE and ROE with positive free cash flow. We recommend HOLD on the stock for price target of Rs 405 (11x FY18E)