On July 27, 2020, the stock was worth Rs. 909.5. Today, it has risen to Rs. 4,490, an increase of 353 percent over that period.
Alkyl Amines Chemicals stock has returned 353 percent to its shareholders over the past 12 months. On July 27, 2020, the stock was worth Rs. 909.5. Today, it has risen to Rs. 4,490, representing a 353 percent gain over that period. By comparison, Sensex is up 39 percent for the year.
A Rs. 5 lakhs invested in the stock of India’s leading amine producer a year ago would have turned into Rs. 24.68 lakhs today.
The stock has risen 1,497 percent in the past three years and 2,874 percent in the past five years. They have also more than doubled in the first six months of 2021. Experts believe the amine makers are expecting good results because of the rapid expansion of vaccine production.
The company’s stock rose 11 percent to a new 52-week high of 4,490 rupees on the BSE today. With a market capitalization of more than Rs. 22,000 crore, the stock is above the 5-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages.
“Alkylamines provided a breakout from the rectangular pattern, which is very positive for the stock going forward. The momentum indicators have again provided a buy crossover on the daily charts and the stock has been trading in a short-term range of Rs 3400-4000 and now it is likely to head towards Rs 4600, which is its short-term target, while the immediate support is at Rs 4000,” Jay Thakkar, vice president and head of equity research, Marwadi Shares and Finance Limited told BusinessToday.in.
He said that as long as the stock trades above the Rs. 4,000 level, the short-term outlook remains positive for the stock.
According to MarketsMojo, the company has a strong debt service capacity as it has a low debt to EBITDA ratio of 0.65. The technical trend has improved from moderately bullish on July 22, 2021, and the stock is now in a bullish range and has since posted a 14 percent gain.
Many factors for the stock are bullish, such as MACD, Bollinger Bands, KST, DOW and OBV. However, the company noted that stock valuations are very expensive right now.
Motilal Oswal recently initiated coverage of the stock with a “neutral” rating. The brokerage noted that the capacity expansion would contribute to the current high valuation, as the company is expected to generate a return on equity of 35 to 37 percent, the best among peers.
The company reported a stand-alone profit of Rs. 92.60 crore for the quarter ended March 2021. Profit for the one-year period was Rs. 49.21 crore. Earnings from operations rose 63 percent to Rs. 382.13 crore in the quarter ended March, up from Rs. 234.77 crore a year ago. Earnings per share rose to Rs. 45.36 in March 2021 from Rs. 24.13 in March 2020.
Alkyl Amines Chemicals manufactures and sells a variety of aliphatic amines, amine derivatives and other specialty chemicals.
The company has three manufacturing sites with 12 plants and associated utilities in Patalganga and Kurkumbh in Maharashtra and Dahej in Gujarat. The company has a research and development center in Hadapsar, Pune.