Balaji Amines
CMP Rs. 167.00
BSE Code : 530999
Most of the mid caps and small caps are hitting new highs but Balaji Amines is still available at 15% discount to its 52W high of Rs 195 made in Jan’10. It is among the few handful manufacturers across the world producing methylamines, ethylamines and their erivatives, as amine manufacturing technology is a closely guarded process. Few months ago it commissioned Gamma Butyro Lactone (GBL) plant with a capacity of 18 MT / day which is first of its kind in India and is again a 100% import substitute. Recently it commenced production of PVP K-30 which is an import substitute, at its new plant having installed capacity of 1200 MT. Because of the backward integration and introduction of niche products, company has been able to boost its operating margin considerably. In near future company is looking to set up a three-star hotel at its surplus land in Solapur, Maharashtra with an investment of Rs 30 cr. It has already finalized a deal with the Sarovar group for managing the hotel. On a conservative conservative basis for FY10 it is expected to register sales of Rs 260 cr and PAT of Rs 22 cr i.e. EPS of Rs 34 on equity of Rs 6.50 cr. Scrip can cross Rs 200 easily in short term.
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