Balaji Amines Ltd

Balaji Amines Ltd
A
CATALYST
OF CHANGE
Balaji Amines Ltd
4
Recommendation
BUY
CMP
Rs 218
Target Price
Rs 310
Sector
Chemicals
Stock Details
BSE Code
530999
NSE Code
BALAMINES
Bloomberg Code
BLA IN
Market Cap (Rs cr)
706
Initiating Coverage
Free Float (%)
45.58
52- wk HI/Lo (Rs)
239/106
Avg. volume NSE (Quarterly)
110,010
Face Value (Rs)
2.0
Dividend (FY 16)
100%
Shares o/s (Cr)
3.2
Relative Performance
1Mth
3Mth
1Yr
BAL
6.8%
72.2%
92.7%
Sensex
6.4%
16.3%
-4.1%
1-Dec
1-Mar
1-Jun
220
180
140
100
1-Jun
1-Sep
st
Shareholding Pattern
31 Mar 16
Promoters Holding
Institutional (Incl. FII)
Corporate Bodies
Public & others
54.42
0.35
3.91
41.32
Runjhun Jain –Sr. Research Analyst 022 3926 8177
[email protected]
Sunil Jain – Head of Retail Research 022 39268196
[email protected]
A CATALYST OF CHANGE
Balaji Amines, set up in 1988, is a leading manufacturer of Aliphatic Amines. It
specialized in manufacturing Methylamines, Ethylamines and derivatives of them. It
also operates a 5 start hotel in Solapur – Balaji Sarovar, the only 5 star property in the
city.
Investment Rationale
 Core Business: (A) High Volume growth: BAL is targeting volume growth of 25-30%
in near future. However, as the key raw material prices were coming down,
realizations had also remained muted impacting the overall sales growth. (B)
Growing user industries: Pharma and Agro chemical segments contribute ~75-80%
of company’s total revenues, wherein Pharmaceutical industry is expected to grow
at 11-13% in next five years and Agro chemical is expected to grow by 12-13%. (C)
DMF: BAL has set up an ambitious 30,000 tones p.a Dimethyl formamide (DMF)
and added 7,500, Dimethyl amine hydrochloride (DMA HCL) facility taking the total
capacity to 24000 MT with an investment of Rs 30 cr in FY14. However, due to
excess supply at lower prices from China, BAL’s growth got impacted. Currently the
company is utilizing 15-20% of its capacity due to stiff competition from China. Still,
the management is hopeful of revival in the product as it doesn’t see Chinese
companies will continue bleeding and expect up-tick in prices in future. Also, it
expects some regulatory intervention in form of Anti dumping duty.
 Hotel Business – doing well: Balaji Amines started a 5 star hotel in Solapur (only 5
star hotel till date) in Oct’13 with an investment of Rs 110 cr. It is a 129 room facility.
Solapur is located on major road and rail routes between Mumbai and Hyderabad
and is an important hub for pilgrims for Pandharpur, Tuljapur Siddheshwar temple,
Gangapur, Bijapur and Akkalkot. All these destinations attract millions of pilgrims
and tourist every year to Solapur. In addition, various corporates are coming up
which drives corporate tourist traffic. For FY17E/FY18E, we expect Hotel to report
sales of Rs 18.8/23.2 cr with EBITDA of Rs 7/9.5 cr
 Divestment of loss making subsidiary: BAL is looking to divest stake in its loss
making subsidiary – Balaji Greentech Products Ltd, in which it holds 66% stake. Due
to accumulated losses, the subsidiary has ~Rs 18 cr debt which is putting interest
cost pressure on the financials of the company. BAL has decided to sale the
company but to reduce the interest cost burden it has recently re-paid long term
debt of the company which will eventually help reducing the drain on consolidated
numbers as well.
Valuation & Recommendation
For FY16-18E we expect the company’s sales to grow by 20.3% and PAT by 33.3%
(as interest cost if likely to come down and with no more capex lined up
depreciation is likely to be stable at current levels). We have forecasted stable
EBITDA margins. 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 rerating of the stock given the improvement in ROCE and ROE with positive free
cash flow. We have assigned multiple of 13x for FY17E earnings, giving a price target
of Rs 310. We are initiating coverage on Balaji Amines Limited with a BUY rating for
price target of Rs 310, an upside of 42%.
Year
Consol
Sales
(Rs cr)
Growth
(%)
EBITDA
(Rs cr)
Margin
(%)
PAT
(Rs cr)
Margin
(%)
Adj EPS (Rs)
P/E (x)
RoE
FY15A
FY16A
FY17E
FY18E
618.8
643.1
773.0
931.2
1.4%
3.9%
20.2%
20.5%
101.8
126.7
155.5
188.6
16.4%
19.7%
20.1%
20.3%
34.3
57.6
77.1
102.4
5.5%
9.0%
10.0%
11.0%
10.6
17.8
23.8
31.6
20.6
12.3
9.2
6.9
15.0%
20.6%
22.1%
23.1%
1|Page
Balaji Amines Ltd
INVESTMENT RATIONALE
Initiating Coverage

o
Core Business
High Volume growth – BAL is targeting volume growth of 25-30% in near future on back
of increase sales of Methyamine, specialty chemcials like NMP, DMA, Morpholine, NEP
etc.
However, as the key raw material prices were coming down, realizations had also
remained muted impacting the overall sales growth. However, we believe the prices
could near bottom and any up-tick in prices from here on can give a big boost to the
company’s revenues. The company recorded volume growth of 22% in FY16 however
due to decline in the prices of raw materials and subsequently in finished products
prices, value growth was restricted to mere 4%. Going forward we expect finishes
products prices to remain stable. We are forecasting 20% growth for standalone business
for FY17E and FY18E at Rs 763 cr and Rs 916 cr respectively.
70000
25%
60000
20%
50000
15%
40000
Volume
10%
30000
5%
20000
Value Gr
0%
10000
0
-5%
FY13
o
Vol Gr
FY14
FY15
FY16
Growing user industries – BAL caters to many industries like Pharmaceuticals, Agro
chemicals, Paints, Oil and Gas, Rubber cleaning, Dyes and Textiles etc. However,
Pharmaceuticals and Agro chemicals contributes ~75-80% of company’s total revenues.
The Indian pharmaceuticals market is estimated to be worth US$36.8 billion in revenues
for the fiscal year 2015 and is estimated to grow at a CAGR of 11-13% in next five years.
Moreover, government’s thrust on more affordable medicines and increasing the reach
should work in favor of the pharmaceuticals companies and indirectly for companies like
Balaji Amines. Pharmaceutical segment is key segment for BAL and contributes around
50% of company’s revenues and has wide client base like Aurobindo, Dr Reddy, Cipla etc.
Other key user industry for BAL is Agro chemical which contributed 26% to total revenues
in FY15. Indian agro-chemical industry is growing at a CAGR of 12-13% p.a. and is
expected to reach over $6.8bn in 2017. India is world’s fourth largest pesticide producing
country. Factors like low consumption of crop protection products in India at 0.6
kilograms per hectare compared to the global average of 3 kilograms per hectare, the
availability of cheap labor and low processing costs, a growing opportunity for contract
manufacturing and research among Indian players offers strong growth potential. Some
of its clients are Bayer Crop, BASF, Jubilatn Organics etc
2|Page
Initiating Coverage
Balaji Amines Ltd
o
DMF – BAL has set up an ambitious 30,000 tones Dimethyl formamide (DMF) and added
7,500 Dimethyl amine hydrochloride (DMA HCL) facility taking the total capacity to 24000 MT
with an investment of Rs 30 cr in FY14. DMF is used in Pharma space as raw materials for
manufacturing anti-diabetic and antibiotic like Metformin and Ranitidine. BAL’s capacity
of DMF was set up to replace the import in the country.
India’s total consumption of DMF stands at 44,000 tons per annum of which Rashtriya
Chemical and Fertilizer produces meagre between 3,000 – 4,000 tons per annum. This
doesn’t create any meaningful competition however it does face stiff competition from
Chinese/Saudi players and due to excess supply at lower prices from China/Saudi, BAL’s
growth got impacted. Currently the company is utilizing 20-25% of its capacity due to stiff
competition from China.
Still, the management is hopeful of revival in the product as it doesn’t see Chinese
companies will continue bleeding and expect up-tick in prices in future. Also, it expects
some regulatory intervention in form of Anti dumping duty.
o
No major Capex in near future – With hotel and DMF capex behind it, the company is not
planning any big capex in near future.
With improving cash flows and no capex lined up the company is looking to repay its high
interest cost bearing debt which would eventually improve the ROCE of the company
The company is launching a new product – Acetonenitrile with an investment of less than
Rs 20 cr for 10,000 ton capacity. It has not taken any loan for it. It is widely used in
battery applications and in Human Insulin, hence pharma sector would be a major
customer for it. Alkyl Amine is one of the leading player in Acetonenitrile space.
Capex in last four years
Rs cr
FY12
Capex
115.9
FY13
89.0
FY14
52.3
FY15
34.1
The company has done total capex of Rs 290 cr in last 4 years out of which it has spent Rs
110 cr for Hotel. BAL enjoys Asset turnover of 1.8x hence on Rs 180 cr of last 4 years,
ideal revenue addition should be Rs 325 cr however the company has done incremental
revenue of just Rs 169 cr, which we believe gives enough scope to the company to grow
in coming years without any more investments.
28%
26%
24%
22%
24.6%
21.6%
20.6%
20%
16.7%
18.3% 18.6%
16.6%
15.0%
16.1%
14%
22.1%
23.9%
21.5%
18.2%
18%
16%
27.0%
23.1%
23.2%
14.8%
15.4%
12%
10%
FY10
FY11
FY12
FY13
ROCE
FY14
FY15
FY16 FY17E FY18E
ROE
3|Page
Balaji Amines Ltd
Initiating Coverage

Hotel Business - doing well: Balaji Amines started a 5 star hotel in Solapur (only 5 star
hotel till date) in Oct’13 with an investment of Rs 110 cr. It is a 129 room facility. It has
tied up with Sarovar group for the management of the Hotel on management fee plus
nominal revenue sharing basis.
Solapur is located on major road and rail routes between Mumbai and Hyderabad and is
an important hub for Pandharpur, Tuljapur Siddheshwar temple, Gangapur, Bijapur and
Akkalkot. All these destinations attract millions of pilgrims and tourist every year to
Solapur.
In addition, various corporates are coming up like NTPC is setting up 1320 MW thermal
power plant with an investment of Rs 9500 cr, HPCL (HP Gas) is putting up a new LPG
bottling plant in Solapur will drive corporate tourist traffic. There are other corporates
also present like Precision Camshafts, Smruthi Organics, Thermax etc.
Solapur is a city with multi-linguistic and multi-cultural features and getting popular as a
destination wedding place, due to which BAL’s hotel’s Banquets are doing very well
Hotel division did sales of Rs 15 cr in FY16 with EBIT loss of Rs 1.7 cr. However, the
financials are improving on quarterly basis as evident from below table
Rs cr
Sales
EBIT
Q2
5.0
0.1
Q3
1.6
0.1
FY14
Q4
2.4
0.1
FY14
4.0
0.2
Q1
2.5
0.0
Q2
2.4
0.2
FY15
Q3
2.9
-0.4
Q4
3.7
1.2
FY15
11.5
2.0
Q1
3.4
0.7
Q2
3.0
-0.8
FY16
Q3
4.7
0.2
Q4
3.8
-0.3
FY16
15.0
-1.7
For FY17E/FY18E, we expect Hotel to report sales of Rs 19/23 cr with EBITDA of Rs
7.0/9.5 cr

Divestment of loss making subsidiary – Balaji amines’ subsidiary Balaji Greentech
Products manufactures energy efficient lamps and components and supplies a
comprehensive range of Compact Fluorescent Lamps (CFL). BAL is looking to divest stake
in its loss making subsidiary in which it holds 66% stake now. BAL started CFL business in
FY09 with a capital advance of Rs 6.94 cr. It undertakes the job work for third party
companies.
However, the division has not been able to perform as per company’s expectations and
has been making losses. Due to accumulated losses, the subsidiary has ~Rs 18 cr debt
which is putting interest cost pressure on the financials of the company.
BAL has decided to sale the company but to reduce the interest cost burden it has
recently re-paid long term debt of the company which will eventually help reducing the
drain on consolidated numbers as well.

Limited players – Worldwide Amines technology is a closely guarded process with only
few handful companies having access to such technology. For the first time in India, Balaji
testes on a indegenoously developed products and over the years has become a leading
player in the segment and commands healthy market share of 60-70% in domestic region
for various products.
BAL has mastered the complex process which we believe, would act as a major entry
barrier for domestic competitors and would provide revenue visibility and stable
profitability.
4|Page
Balaji Amines Ltd
COMPANY OVERVIEW
Initiating Coverage
Balaji Amines, set up in 1988, is a leading manufacturer of Aliphatic Amines. It specialized in
manufacturing Methylamines, Ethylamines and derivatives of them. The company enjoys
leadership position in many of its products like Monomethylamine (MMA), Dimethyl amine
(DMA), Trimethylamine (TMA), Dimethyl Amino Ethanol (DMAE), Mono Methyl Amino
Ethanol etc.
It caters to host of industries like Pharma (51% of revenues), , Agro Chemicals (26%), Paint
Stripping & Resins, Rubber cleaning etc.
The company has three state of the art units – two near Solapur and one near Hyderabad. In
addition BAL possess a fully furnished Laboratory which helps the company in development
of newer products.
It also operates a 5 start hotel in Solapur – Balaji Sarovar, the only 5 star property in the city.
Rubber
Cleaning 4%
Dyes & textiles
Water
4%
Treatment
2%
Oil & Gas 3%
Others 3%
Animal Inds 2%
Pharma 51%
Agro 26%
Paint stripping
4%
5|Page
Balaji Amines Ltd
Industry Overview
Amines are a large class of nitrogen-containing organic compounds derived from Ammonia
(NH3) by displacement of H2 in the ammonia molecule by other radicals such as Methyl,
Ethylene and Propanol
Initiating Coverage
Structurally, three types of amines are formed – Primary/Secondary/Tertiary based on the
number of hydrogen atoms displaces
For example, following are the three tpes of Methylamines (MA)
Primary or Mono Amine – MMA
Secondary or Di amine – DMA
Tertiary amine - TMA
6|Page
Balaji Amines Ltd
Initiating Coverage
QUARTERLY RESULT
Standalone(Rs cr)
Net sales
Cost of Materials
Staff cost
Other Exps
Total Expenses
EBITDA
margins
Depreciation
EBIT
Interest
Other income
PBT
Tax
Tax rate
MI & EO
PAT
Equity Capital
FV
EPS
FY14
610.1
381.0
20.8
117.4
519.1
91.0
14.9%
16.5
74.6
31.5
2.6
45.7
12.1
26.5%
0.0
33.5
6.5
2.0
10.3
Q1FY15
164.5
101.2
5.7
32.6
139.5
25.0
15.2%
4.9
20.1
8.4
0.8
12.5
3.2
25.4%
0.0
9.3
6.5
2.0
2.9
Q2FY15
150.5
85.3
5.5
31.4
122.3
28.2
18.7%
4.9
23.2
7.9
0.9
16.2
5.8
36.0%
1.3
9.1
6.5
2.0
2.8
Q3FY15
141.7
84.5
6.2
29.4
120.1
21.6
15.2%
5.0
16.6
7.7
0.5
9.5
3.3
34.6%
0.0
6.2
6.5
2.0
1.9
Q4FY15
148.3
79.7
7.1
32.6
119.4
28.9
19.5%
3.8
25.1
7.5
1.2
18.9
7.1
37.7%
0.0
11.8
6.5
2.0
3.6
FY15
604.9
350.7
24.5
127.3
502.5
102.4
16.9%
18.6
83.8
31.4
3.4
55.7
19.4
34.8%
0.0
36.4
6.5
2.0
11.2
Q1FY16
159.6
94.8
6.6
29.3
130.7
29.0
18.2%
4.4
24.6
5.7
0.7
19.6
6.7
34.4%
0.0
12.8
6.5
2.0
4.0
Q2FY16
158.8
91.9
6.9
32.1
130.9
27.9
17.6%
4.4
23.6
5.2
0.8
19.1
7.3
38.2%
0.0
11.8
6.5
2.0
3.6
Q3FY16
150.0
79.0
7.7
32.2
118.9
31.1
20.7%
4.4
26.7
5.2
0.1
21.7
8.4
38.6%
0.0
13.3
6.5
2.0
4.1
Q4FY16
166.5
83.1
10.4
32.1
125.6
40.9
24.6%
4.7
36.1
4.0
0.7
32.8
9.5
28.9%
0.0
23.3
6.5
2.0
7.2
FY16
634.9
348.9
31.5
125.7
506.0
128.9
20.3%
17.9
111.0
20.1
2.2
93.2
31.9
34.2%
0.0
61.3
6.5
2.0
18.9
The company recorded volume growth of 22% in FY16 however due to decline in the prices of
raw materials and subsequently in finished products prices, value growth was restricted to
mere 4%. The company has been reported improving profitability over the years and likely to
maintain the trend going forward. However, Q4 margins of 24.6% are not sustainable . Q4
margins were abnormally high as one of the key Chinese player was not so aggressive and
hence prices moved up.
SEGMENTAL BREAKUP
Amines
- Sales
- EBIT
margins %
Hotel
- Sales
- EBIT
margins %
FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
FY15
Q1FY16
Q2FY16
Q3FY16
Q4FY16
FY16
606.2
93.4
15.4%
162.0
25.8
15.9%
148.0
28.9
19.5%
138.9
17.5
12.6%
144.7
29.0
20.0%
593.6
103.8
17.5%
156.3
28.9
18.5%
155.8
25.1
16.1%
145.3
26.6
18.3%
162.6
37.1
22.8%
620.1
114.9
18.5%
4.0
0.2
2.5
0.0
2.4
0.2
2.9
-0.4
3.7
1.2
11.5
2.0
3.4
0.7
3.0
-0.8
4.7
0.2
3.8
-0.3
4.5%
-1.6%
6.1%
-13.8%
32.3%
17.0%
21.3%
-27.5%
4.8%
-7.4%
15.0
-1.7
11.4%
Hotel division’s performance is improving and likely to continue the momentum going
forward.
7|Page
Balaji Amines Ltd
PEER COMPARISON
Net
Sales
EBITDA
Margin
(Rs Cr)
473
(Rs Cr)
92
262
Indo Amines
253
Balaji Amines
643
Alkyl Amines
Amines &
Plasticizers
EV
(Rs
Cr)
721
PE
EV/S
EV/
EBITDA
P/BV
(Rs)
308
Mcap
(Rs
Cr)
629
(x)
12.6
(x)
1.53
(x)
7.8
(x)
5.7
1.6
20
108
162
11.9
0.62
6.9
4.9
2.8
39
128
169
14.1
0.67
5.5
2.3
17.8
218
706
866
12.3
1.35
6.8
4.1
Margin
EPS
Price
(%)
20%
PAT
(Rs
Cr)
50
(%)
11%
(Rs)
24.5
23
9%
9
3%
31
12%
9
4%
127
20%
58
9%
Initiating Coverage
Source: FY16 numbers, Company, NB Research
RISKS


DMF prices remains stagnant: BAL undertook an ambitious capex and expanded its
capacity for DMF to replace the imports and to get the benefit of strong prices
however, due to increased dumping by China at lower prices; it couldn’t reach its
targeted growth and has been facing reduction in prices. Currently, the company is
hoping of turnaround in prices and looking for some government intervention in
future (in form of dumping duty). In case it doesn’t materialize then the company
had to take the brunt of subdued prices.
Higher competition from China/Saudi for other products as well: China is the
biggest competitor for the domestic chemical segment. Due to large scale
production in China and incentives provided by its government, domestic industry is
unable to compete with them on pricing. BAL is also facing stiff competition on few
products from China/Saudi. Any further competition from China for its other
products can impact the growth forecasts of the company.
8|Page
Balaji Amines Ltd
VALUATION AND RECOMMENDATION
In the past five years from FY10-16, the company has grown at a CAGR of 20.6% (despite
declined realizations) with 30.8% PAT growth despite to higher depreciation (capex done for
DMF and hotel) and higher interest (loan taken for hotel and for toher expansions). EBITDA
margins have improved from 14.7% in FY10 to 20.3% in FY16 (standalone margins). For the
next two years i.e. FY16-18E we expect the company’s sales to grow by 20.3% and PAT by
33.3% (as interest cost if likely to come down and with no more capex lined up depreciation is
likely to be stable at current levels). We have forecasted stable EBITDA margins.
Initiating Coverage
BAL is leading amine player and enjoys handsome market share in its product baskets. The
company has strong R&D capabilities and has launched many new products from its in-house
research. It is consistent dividend paying company and is poised for good growth and is
available at attractive valuations.
Balaji Amines qualifies as a perfect candidate for “Make In India” case as it is manufacturing
various products in India to substitute imports.
At the CMP, the stock is trading at 9.2x/6.9x of our FY17E/F18E expected earnings
respectively. We believe there is scope of re-rating of the stock given the improvement in
ROCE and ROE with positive free cash flow. We have assigned multiple of 13x for FY17E
earnings, giving a price target of Rs 310. We are initiating coverage on Balaji Amines Limited
with a BUY rating for price target of Rs 310, an upside of 42% from current levels.
Forward PE Chart
300
11x
250
9x
200
7x
150
5x
100
3x
50
0
Apr-10
Apr-11
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
9|Page
Balaji Amines Ltd
Financials – Consolidated – Rs cr
Profit & Loss
FY15A
FY16A
Net Sales
618.8
643.1
% change
1.4%
3.9%
FY18E
Balance Sheet
FY15A
FY16A
FY17E
FY18E
773.0
931.2
Share Capital
6.5
6.5
6.5
6.5
20.2%
20.5%
Reserves & Surplus
221.4
273.7
342.9
437.0
227.9
280.2
349.4
443.5
45.1
50.5
50.5
50.5
255.9
168.0
156.0
116.0
Trade Payables
47.6
49.3
59.0
70.8
Provi s i ons
18.0
34.4
34.4
34.4
9.8
10.2
10.3
12.2
Total Liabilities
622.5
604.7
671.7
739.4
Net Fixed Assets
EBITDA
101.8
126.7
155.5
188.6
Net Worth
EBITDA margin
16.4%
19.7%
20.1%
20.3%
Net Deferred Tax Liab
Depn & Amort
20.1
19.4
22.5
23.9
Operating income
81.7
107.3
132.9
164.7
Interest
34.9
22.2
18.2
13.4
4.3
2.8
5.0
7.0
PBT
51.1
88.0
119.7
158.3
Tax
17.9
30.3
42.5
55.9
341.1
340.8
355.4
362.3
MI & EO
-1.1
0.0
0.0
0.0
Capital WIP
3.3
16.3
4.1
3.4
Other Income
Initiating Coverage
FY17E
Total Loans
Other CL
PAT
34.3
57.6
77.1
102.4
Investments
0.0
0.0
0.0
0.0
PAT margin (%)
5.5%
9.0%
10.0%
11.0%
Cash & Bank
7.0
8.6
15.9
20.1
Sh o/s - Diluted
Adj EPS
Cash EPS
Qtrly-Stdalone
Revenue
EBITDA
Dep & Amorz
Op Income
Interest
Other Inc.
3.2
3.2
3.2
3.2
Inventories
112.4
78.0
101.4
119.3
10.6
17.8
23.8
31.6
Debtors
119.4
124.3
147.3
177.2
Loans & Advances
39.4
36.7
47.5
57.1
0.0
0.0
0.0
0.0
622.5
604.7
671.7
739.4
16.8
23.8
30.8
39.0
Jun.15
Sept.15
Dec.15
Mar.16
159.6
158.8
150.0
166.5
29.0
27.9
31.1
40.9
4.4
4.4
4.4
4.7
24.6
23.6
26.7
36.1
5.7
5.2
5.2
4.0
CF from Operation
Misc Exp
Total Assets
Cash Flow
FY15A
FY16A
FY17E
FY18E
Op CF before tax
101.8
126.7
155.5
188.6
Change in WC
-37.5
46.4
-47.4
-43.7
Tax
-17.9
-30.3
-42.5
-55.9
46.4
142.7
65.5
89.1
-34.1
-32.0
-25.0
-30.0
0.7
0.8
0.1
0.7
PBT
19.6
19.1
21.7
32.8
Tax
6.7
7.3
8.4
9.5
Oth Inc & Investments
24.2
2.8
5.0
7.0
EO
0.0
0.0
0.0
0.0
CF from Investing
-9.9
-29.3
-20.0
-23.0
PAT
12.8
11.8
13.3
23.3
4.0
3.6
4.1
7.2
Diviend Paid
-4.7
-7.6
-8.0
-8.3
Performance Ratio
FY15A
FY16A
FY17E
FY18E
Share Capital
EBITDA margin(%)
16.4%
19.7%
20.1%
20.3%
Loans
EBIT margin (%)
13.2%
16.7%
17.2%
17.7%
Interest
PAT margin (%)
5.5%
9.0%
10.0%
11.0%
Others
ROE (%)
15.0%
20.6%
22.1%
23.1%
ROCE (%)
15.4%
21.5%
23.9%
27.0%
PAT growth (%)
2.3%
68.1%
33.9%
32.8%
Debt/Equity (x)
1.1
0.6
0.4
0.3
Valuation Ratio
FY15A
FY16A
FY17E
FY18E
20.6
12.3
9.2
6.9
Adj EPS
Price/BV (x)
1.0
0.8
0.6
0.5
BV per share
EV / Sales
1.5
1.3
1.1
0.9
Cash per share
EV / EBITDA
9.4
6.8
5.4
4.3
Dividend per share
EPS (Rs.)
PE (x)
Capex
Financing
0.0
0.0
0.0
0.0
-5.8
-87.8
-12.0
-40.0
-34.9
-22.2
-18.2
-13.4
6.0
5.6
0.0
0.0
CF from Financing
-39.3
-111.9
-38.2
-61.8
Net Chg. in Cash
-2.7
1.6
7.3
4.3
Cash at beginning
9.7
7.0
8.6
15.9
Cash at end
7.0
8.6
15.9
20.1
FY15A
FY16A
FY17E
FY18E
10.6
17.8
23.8
31.6
70.3
86.5
107.8
136.9
2.2
2.6
4.9
6.2
1.2
2.0
2.1
2.2
Per Share Data
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Initiating Coverage
Balaji Amines Ltd
Disclaimer:
Nirmal Bang Securities Private Limited (hereinafter referred to as “NBSPL ”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and MCX stock Exchange Limited. We have been granted certificate of Registration as a Research Analyst with
SEBI. Registration no. is INH000001766 for the period 23.09.2015 to 22.09.2020 .NBSPL or its associates hold more than 1% financial
interest/beneficial ownership in the company covered by Analyst. NBSPL or its associates/analyst has not received any compensation from the
company covered by Analyst during the past twelve months. NBSPL /analyst has not served as an officer, director or employee of company
covered by Analyst and has not been engaged in market making activity of the company covered by Analyst. The views expressed are based
solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks
involved before making any investment decision.
Nirmal Bang Research (Division of Nirmal Bang Securities Pvt. Ltd.)
B-2, 301/302, Marathon Innova,
Opp. Peninsula Corporate Park
Off. Ganpatrao Kadam Marg
Lower Parel (W), Mumbai-400013
Board No. : 91 22 3926 8000/8001
Fax. : 022 3926 8010
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