Alkyl Amines Chemicals' share has delivered 353 per cent return to its shareholders in the last 12 months. The share stood at Rs 909.5 on July 27, 2020. It zoomed to Rs 4,490 today, translating into gains of 353 per cent during the period. In comparison, Sensex rose 39 per cent in one year.
Rs 5 lakh invested in the share of the leading producer of amines in India a year ago would have turned into Rs 24.68 lakh today.
The stock has jumped 1,497 per cent in the last three years and surged 2,874 per cent in the last five years. It has more than doubled in the first six months of 2021 as well. Experts believe that amine makers are expected to do well because of the rapid scale-up in vaccine manufacturing.
The stock rose 11 per cent to hit a fresh 52-week high of Rs 4,490 on BSE today. With a market capitalisation of over Rs 22,000 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
"Alkylamines have provided a breakout from the rectangular pattern which is quite positive for the stock going forward. The momentum indicators have again provided a buy crossover on the daily charts as well its was trading in a short term range of Rs 3,400-4,000 levels and now from hereon it is likely to inch towards Rs 4,600 levels which is its short term target whereas the immediate support is pegged at Rs 4000 levels," Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance Limited told BusinessToday.in.
He noted that till the stock is trading above Rs 4,000 levels, the short-term outlook remains positive for the stock.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.65 times. The technical trend has improved from Mildly Bullish on July 22, 2021, and the stock is technically in a Bullish range now and has generated a 14 per cent return since then.
Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV. However, it noted that the valuation is very expensive right now.
Recently, Motilal Oswal initiated coverage on the stock with a 'Neutral' rating. The brokerage house noted that the capacity expansions would facilitate the current high valuations as the company is expected to generate ROEs of 35-37 per cent, the best among peers.
The company reported a standalone profit of Rs 92.60 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 49.21 crore. Revenue from operations grew 63 per cent to Rs 382.13 crore in the March-ended quarter against Rs 234.77 crore a year ago. The EPS has increased to Rs 45.36 in March 2021 from Rs 24.13 in March 2020.
Alkyl Amines Chemicals is in the business of manufacturing and marketing various aliphatic amines, amine derivatives and other speciality chemicals.
The company has three manufacturing sites with 12 production plants and related utilities at Patalganga and Kurkumbh in Maharashtra and Dahej in Gujarat. The company has an R&D centre at Hadapsar, Pune.
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