Motilal Oswal Financial Services neutral on Alkyl Amines; target price Rs 3025

Motilal Oswal Financial Services has neutral call on Alkyl Amines Chemicals with a target price of Rs 3025. The current market price of Alkyl Amines Chemicals is Rs 2841.75.

Alkyl Amines Chemicals, incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 14519.78 Crore) operating in Chemicals sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 411.20 Crore, down -13.92 % from last quarter Total Income of Rs 477.68 Crore and up 16.53 % from last year same quarter Total Income of Rs 352.87 Crore. Company has reported net profit after tax of Rs 52.41 Crore in latest quarter.

The company’s top management includes Mr.Yogesh M Kothari, Mr.Dilip G Piramal, Mr.Shobhan M Thakore, Mr.Shyam B Ghia, Mr.Leja Hattiangadi, Mr.Chandrashekhar R Gupte, Mr.Rakesh S Goyal, Mr.Suneet Y Kothari, Mr.Kirat Patel, Mr.Premal N Kapadia. Company has N M Raiji & Co. as its auditors. As on 30-09-2022, the company has a total of 5 Crore shares outstanding.

Investment Rationale
Ongoing expansions will boost the capacity of Aliphatic Amines by ~30% from 90-100ktpa at present. Entry into newer specialty products is also likely to aid margin as the management sees strong demand for these products. The brokerage estimates ~20% revenue CAGR over FY22-24, with a 31% EPS CAGR over the same period.

Promoter/FII Holdings
Promoters held 71.99 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.28 per cent, DIIs 1.11 per cent.