Balaji Amines Limited

Basic Materials — Specialty Chemicals · NSE

₹2,070.50+₹27.10 (+1.33%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Balaji Amines Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Balaji Amines Limited engages in the manufacture and sale of methylamines, ethylamines, and derivatives of specialty chemicals and pharma excipients in India and internationally. The company operates in two segments, Chemicals and Hotel.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees1,161

Annual revenue₹1,400 Cr

How does it make money?

Turns over ₹1,400 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 1,161 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 35.8% and earnings to grow about 86.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+35.8%

Est. earnings growth+86.9%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -40% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-40%

Margin effect-14%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 15.6% a year
✗ Profit has declined at 19.9% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

32.7x

3Y Median

26.6x

40 monthly readings · mean 27.9x · range 19.1x–45.0x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 23% above its 3y median of 26.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 19% below the peer median of 40.4x.

vs. its own history

Expensive

26.6x median over 40 months · +23%

vs. sector peers

Fair

40.4x median of 4 peers · -19%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.9% to 8.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.7% to 10.1% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 131% over 3 years, from ₹58 Cr to ₹133 Cr.
🔴High leverageFinancial
Debt/Equity of 6.19x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 26.6% to 20.9%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹356 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 49% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.6% to 20.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.19x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 23% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 20.9% to 8.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 20.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹356 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 26.6x✗ 32.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹6,709 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.39x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹63.28

Profitable

Profitable on a per-share basis

ROE

8.5%

Moderate

Moderate capital efficiency

ROCE

10.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

6.19x

High

High leverage

Revenue Growth (YoY)

27.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

97.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.53%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹356 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

22.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

22.4%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

2.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.91

Market-like

Moves roughly in line with the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2122.9 / 2197.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,332 Cr	₹1,608 Cr	₹1,386 Cr	₹1,400 Cr	-15.6%
EBITDA	₹619 Cr	₹351 Cr	₹263 Cr	₹292 Cr	-22.2%
EBITDA Margin	26.6%	21.8%	19.0%	20.9%	—
PAT (Net Profit)	₹326 Cr	₹205 Cr	₹158 Cr	₹167 Cr	-19.9%
EPS	₹100.47	₹63.22	₹48.62	₹51.6	-19.9%
ROE	20.9%	11.9%	8.5%	8.5%	—
ROCE	31.7%	15.3%	10.1%	10.1%	—
Total Debt	₹58 Cr	₹20 Cr	₹11 Cr	₹133 Cr	+32.3%
Free Cash Flow	₹234 Cr	₹68 Cr	₹49 Cr	-₹356 Cr	—

🔴 Revenue has shrunk at 15.6% a year over 3 years.

🔴 EBITDA has shrunk at 22.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.6% to 20.9% over 3 years (-5.7 pts).

🔴 PAT (Net Profit) has shrunk at 19.9% a year over 3 years.

🔴 EPS has shrunk at 19.9% a year over 3 years.

🔴 ROE has fallen from 20.9% to 8.5% over 3 years (-12.5 pts).

🔴 ROCE has fallen from 31.7% to 10.1% over 3 years (-21.6 pts).

🔴 Total Debt has grown at 32.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹234 Cr to -₹356 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,743 Cr

Total Liabilities

₹591 Cr

Cash & Equivalents

₹74 Cr

Operating Cash Flow

₹184 Cr

Capex

-₹540 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

67.6%

Corporate Actions

Dividend Rate

₹11

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹2,123

+2.5% vs CMP

Target Range

₹1,334 – ₹3,327

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

6 general

Balaji Amines Share Price - Live NSE: BALAMINES Stock Price & Chart

Upstox, 16 Oct

Specialty chemicals: Alkyl, Balaji Amines zoom up to 20% on huge volume

Business Standard, 06 Oct

Balaji Amines Share Price news: Rs 2,210.70 and sector view

Univest, 24 Aug

Balaji Amines jumps 12%, Alkyl Amines gains 8% as anti-dumping duty hopes continue to boost amines stocks

Moneycontrol.com, 08 Jul

Balaji Amines, Alkyl Amines, Deepak Nitrite, Aarti Ind: Why chemical stocks rallied up to 20% today; targets

Business Today, 06 Oct

Balaji Amines - 10 smallcap stocks soar up to 230% this year, 3 turn multibaggers. Do you own any?

The Economic Times, 17 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Profitability · Risk

WeakGrowth · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Valuation vs its own median of 26.6x · see Key things to watch ↑