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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Balaji Amines Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:50 pm

Market Cap 7,015 Cr.
Current Price 2,165
High / Low2,736/1,960
Stock P/E35.9
Book Value 531
Dividend Yield0.51 %
ROCE16.8 %
ROE12.5 %
Face Value 2.00
PEG Ratio3.01

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Balaji Amines Ltd

Competitors of Balaji Amines Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujchem Distillers India Ltd 182 Cr. 509541/61.8478 3900.00 %1.52 %2.36 % 1.00
Elantas Beck India Ltd 10,755 Cr. 13,56214,000/6,44571.4 1,0180.04 %27.7 %20.6 % 10.0
Crestchem Ltd 87.2 Cr. 291350/61.434.8 16.30.17 %78.2 %56.2 % 10.0
Chemiesynth (Vapi) Ltd 10.5 Cr. 34.134.1/22.0 36.90.00 %1.00 %3.38 % 10.0
Archit Organosys Ltd 91.5 Cr. 44.663.6/35.11,307 31.30.00 %3.69 %0.75 % 10.0
Industry Average8,365.40 Cr2,277.52178.63300.470.24%16.33%12.34%7.67

All Competitor Stocks of Balaji Amines Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales392414451526565780670628586471464381383
Expenses275285309394410584455455458378366327309
Operating Profit11712914213115519621517312893985474
OPM %30%31%31%25%27%25%32%27%22%20%21%14%19%
Other Income1433455336678
Interest5434473233222
Depreciation981011101111111211111111
Profit before tax10412013111914518320516211585904870
Tax %24%26%26%26%30%29%28%27%27%35%25%24%21%
Net Profit798997881021311481198455683656
EPS in Rs23.1426.0827.8924.6127.6433.5537.9528.5719.3114.6316.2710.7115.24

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4475096086166406688589409351,3082,3142,3461,699
Expenses3674295175155145196767477549351,6911,7361,380
Operating Profit818091102127149182193181373623609319
OPM %18%16%15%17%20%22%21%21%19%29%27%26%19%
Other Income44343912456151526
Interest212532352213913231817128
Depreciation10131620192019203234424644
Profit before tax5346465188126166165131327578567294
Tax %32%32%27%35%34%34%32%29%26%25%28%28%
Net Profit36313433588211311797243418406215
EPS in Rs11.009.6210.3410.2517.7825.4234.9336.2732.3473.51113.71100.4756.85
Dividend Payout %7%14%10%12%11%9%7%8%10%5%5%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-13.89%9.68%-2.94%75.76%41.38%37.80%3.54%-17.09%150.52%72.02%-2.87%
Change in YoY Net Profit Growth (%)0.00%23.57%-12.62%78.70%-34.38%-3.57%-34.27%-20.63%167.61%-78.50%-74.89%

Balaji Amines Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:8%
TTM:-27%
Compounded Profit Growth
10 Years:20%
5 Years:12%
3 Years:-5%
TTM:-23%
Stock Price CAGR
10 Years:39%
5 Years:47%
3 Years:-22%
1 Year:-1%
Return on Equity
10 Years:23%
5 Years:22%
3 Years:22%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital666666666666
Reserves1651952212743564615686528881,2431,5481,715
Borrowings2092622561731051522272601271015820
Other Liabilities139158139152168229244195289395351405
Total Liabilities5196206236056358481,0461,1131,3101,7451,9632,146
Fixed Assets234325341341325316320573543681780896
CWIP6383162512326946173141113205
Investments2020000004800730
Other Assets2022672782482844094574465949239961,046
Total Assets5196206236056358481,0461,1131,3101,7451,9632,146

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 9411156856014094144110220354224
Cash from Investing Activity -86-50-4-29-10-135-119-130-62-147-210-164
Cash from Financing Activity -10-53-55-54-551621-26-37-57-81-75
Net Cash Flow-27-32-521-4-12111663-15

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow81.00-129.00-171.00-154.00-46.0044.0030.00-34.00-79.00246.00522.00551.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days747971716873658185935971
Inventory Days6687114801067011677646689116
Days Payable428348585556604244541831
Cash Conversion Cycle99831369311987120116104105129156
Working Capital Days75679570787489102919494116
ROCE %19%18%18%23%30%32%24%18%35%49%36%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters53.70%53.70%53.70%53.70%53.70%53.70%53.71%53.71%53.71%53.71%53.71%53.71%
FIIs4.00%3.90%3.99%4.51%4.55%4.39%4.45%4.55%4.52%4.58%4.92%5.05%
DIIs0.48%0.16%0.16%0.18%0.24%0.37%0.34%0.18%0.90%1.43%1.48%1.59%
Public41.82%42.24%42.15%41.61%41.51%41.53%41.50%41.57%40.88%40.31%39.91%39.67%
No. of Shareholders73,3411,07,4121,21,0441,19,6511,20,7851,29,7021,36,6441,40,9571,44,9901,41,4171,38,0171,32,428

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Nifty Smallcap 250 Index Fund5,9250.191.292,7062024-10-07118.96%
Motilal Oswal Nifty Smallcap 250 Index Fund3,7230.190.812,7062024-10-0737.58%
SBI Nifty Smallcap 250 Index Fund2,7060.190.592,7062024-10-070%
ICICI Prudential Nifty Smallcap 250 Index Fund1,4680.190.322,7062024-10-07-45.75%
HDFC NIFTY Smallcap 250 ETF6710.190.152,7062024-10-07-75.2%
HDFC Nifty Smallcap 250 Index Fund5200.190.112,7062024-10-07-80.78%
Motilal Oswal Nifty 500 Index Fund4160.020.092,7062024-10-07-84.63%
Edelweiss Nifty Smallcap 250 Index Fund1150.180.032,7062024-10-07-95.75%
ICICI Prudential S&P BSE 500 ETF970.020.022,7062024-10-07-96.42%
HDFC S&P BSE 500 ETF50.0202,7062024-10-07-99.82%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)63.22100.47113.7173.5132.34
Diluted EPS (Rs.)63.22100.47113.7173.5132.34
Cash EPS (Rs.)85.70139.27141.9485.7739.84
Book Value[Excl.RevalReserv]/Share (Rs.)584.32524.11405.81280.83206.28
Book Value[Incl.RevalReserv]/Share (Rs.)584.32524.11405.81280.83206.28
Revenue From Operations / Share (Rs.)506.62726.95716.14404.76288.81
PBDIT / Share (Rs.)109.06192.70196.72117.0657.33
PBIT / Share (Rs.)95.06178.63183.76106.4447.57
PBT / Share (Rs.)93.07174.94178.48100.8040.46
Net Profit / Share (Rs.)71.70125.21128.9875.1530.08
NP After MI And SOA / Share (Rs.)63.22100.47113.7173.5132.34
PBDIT Margin (%)21.5226.5027.4628.9219.85
PBIT Margin (%)18.7624.5725.6526.2916.47
PBT Margin (%)18.3724.0624.9224.9014.01
Net Profit Margin (%)14.1517.2218.0118.5610.41
NP After MI And SOA Margin (%)12.4713.8215.8718.1611.19
Return on Networth / Equity (%)11.8920.9429.4726.6315.92
Return on Capital Employeed (%)15.4131.9140.8732.3018.16
Return On Assets (%)9.5416.5819.6518.179.41
Long Term Debt / Equity (X)0.010.010.040.090.18
Total Debt / Equity (X)0.010.030.050.110.36
Asset Turnover Ratio (%)0.791.231.271.020.85
Current Ratio (X)6.706.922.492.381.74
Quick Ratio (X)4.784.891.961.921.33
Inventory Turnover Ratio (X)3.114.807.205.983.76
Dividend Payout Ratio (NP) (%)15.815.973.510.818.03
Dividend Payout Ratio (CP) (%)12.945.233.150.716.17
Earning Retention Ratio (%)84.1994.0396.4999.1991.97
Cash Earning Retention Ratio (%)87.0694.7796.8599.2993.83
Interest Coverage Ratio (X)54.8552.1537.2720.748.06
Interest Coverage Ratio (Post Tax) (X)37.0634.8925.4414.315.23
Enterprise Value (Cr.)6473.736259.559490.085807.491055.90
EV / Net Operating Revenue (X)3.942.664.094.431.13
EV / EBITDA (X)18.3210.0314.8915.315.68
MarketCap / Net Operating Revenue (X)4.032.674.054.360.86
Retention Ratios (%)84.1894.0296.4899.1891.96
Price / BV (X)3.854.057.526.391.24
Price / Net Operating Revenue (X)4.032.674.054.360.86
EarningsYield0.030.050.030.040.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Balaji Amines Ltd as of October 8, 2024 is: ₹2,395.02

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 8, 2024, Balaji Amines Ltd is Undervalued by 10.62% compared to the current share price ₹2,165.00

Intrinsic Value of Balaji Amines Ltd as of October 8, 2024 is: ₹2,681.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 8, 2024, Balaji Amines Ltd is Undervalued by 23.84% compared to the current share price ₹2,165.00

Last 5 Year EPS CAGR: 11.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.58%, which is a positive sign.
  2. The company has higher reserves (690.50 cr) compared to borrowings (162.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (479.00 cr) and profit (202.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 87.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 112.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Balaji Amines Ltd:
    1. Net Profit Margin: 14.15%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.41% (Industry Average ROCE: 16.33%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.89% (Industry Average ROE: 12.34%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 37.06
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 4.78
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 35.9 (Industry average Stock P/E: 178.63)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Balaji Amines Ltd. is a Public Limited Listed company incorporated on 27/10/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24132MH1988PLC049387 and registration number is 049387. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1918.05 Cr. and Equity Capital is Rs. 6.48 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - OthersBalaji Towers, No. 9/1/A/1, Solapur Maharashtra 413224cs@balajiamines.com
http://www.balajiamines.com
Management
NamePosition Held
Mr. A Prathap ReddyExecutive Chairman
Mr. D Ram ReddyManaging Director
Mr. A Srinivas ReddyWholeTime Director & CFO
Mr. N Rajeshwar ReddyWhole Time Director
Mr. Mohan Kumar RamakrishnaIndependent Director
Mr. Adabala Seshagiri RaoIndependent Director
Dr. Suhasini Yatin ShahIndependent Director
Dr. Uma Rajiv PradhanIndependent Director

FAQ

What is the latest fair value of Balaji Amines Ltd?

The latest fair value of Balaji Amines Ltd is ₹2395.02.

What is the Market Cap of Balaji Amines Ltd?

The Market Cap of Balaji Amines Ltd is 7,015 Cr..

What is the current Stock Price of Balaji Amines Ltd as on 07 October 2024?

The current stock price of Balaji Amines Ltd as on 07 October 2024 is ₹2,165.

What is the High / Low of Balaji Amines Ltd stocks in FY 2024?

In FY 2024, the High / Low of Balaji Amines Ltd stocks is 2,736/1,960.

What is the Stock P/E of Balaji Amines Ltd?

The Stock P/E of Balaji Amines Ltd is 35.9.

What is the Book Value of Balaji Amines Ltd?

The Book Value of Balaji Amines Ltd is 531.

What is the Dividend Yield of Balaji Amines Ltd?

The Dividend Yield of Balaji Amines Ltd is 0.51 %.

What is the ROCE of Balaji Amines Ltd?

The ROCE of Balaji Amines Ltd is 16.8 %.

What is the ROE of Balaji Amines Ltd?

The ROE of Balaji Amines Ltd is 12.5 %.

What is the Face Value of Balaji Amines Ltd?

The Face Value of Balaji Amines Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Balaji Amines Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE