Shares of Balaji Amines declined on Tuesday, extending their fall for the second straight session after the company declared its December quarter results. The stock today plunged 5.61 per cent to settle at Rs 2,172.30 over its previous close of Rs 2,301.30. The company’s profit after tax for Q3 FY23 came at Rs 83.79 crore, 17.52 per cent lower from Rs 101.59 crore in Q3 FY22. Revenue from operations for Q3 FY23, however, stood at Rs 588.47 crore, up by 3.48 per cent against Rs 568.70 crore in the same period a year ago.
The drop in operating margin was primarily on account of degrowth in pharma and API (Active Pharma Ingredient) sector, said D Ram Reddy, Managing Director, Balaji Amines.
“Revenues from the newly commenced plants will start contributing to our top line from coming quarters, which in turn can improve the margin profile of the company from Q1 FY24,” Reddy stated.
On the technical front, an analyst said Rs 2,650-2,700 could act as a resistance zone on the counter. Osho Krishan, Senior Analyst- Technical and Derivative Research at Angel One, said, “Balaji Amines is in a secular down run with no sign of respite. Also, it is placed below all its major EMA (Exponential Moving Averages) in all time frames. Any correction beyond the Rs 2,000 mark could further aggravate the sell-off in the counter and it may plunge towards Rs 1,800-odd levels. On the flip side, Rs 2,650-2,700 is likely to act as the stiff resistance.”
The stock traded lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 23.95. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 24.06.
Balaji Amines has an average target price of Rs 4,368.33, Trendlyne data showed, suggesting a potential upside of 101.08 per cent. The scrip has a one-year beta of 1.06, indicating low volatility.
Around 24,000 shares changed hands today on BSE, which was nearly four times higher compared to Balaji Amines’ two-week average volume of 6,033 shares. Turnover on the counter stood at Rs 5.31 crore, commanding a market capitalisation (m-cap) of Rs 7,038.47 crore.
The company specialises in manufacturing Methyl Amines, Ethyl Amines, derivatives of specialty chemicals and natural products. Its business is broadly classified into three segments – Amines, specialty chemicals and derivatives. It caters to a host of industries such as pharma, agrochemicals, paint stripping & resins and rubber cleaning.
Meanwhile, Indian equity benchmarks extended their fall for the second straight session today, dragged by automobile and consumer stocks. The 30-share BSE Sensex pack settled 221 points or 0.37 per cent lower at 60,286; while the broader NSE Nifty index fell 43 points or 0.24 per cent to close at 17,722.
Also Read | Gautam Adani back in the world’s top 20 billionaire rich list; here’s how
Also Read | Paytm shares jump 20%; Goldman Sachs sees the stock at Rs 1,150
