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Fundamental Research : Balaji Amines Ltd.

Balaji Amines Ltd., INDIA, an ISO 9001: 2008 certified company, specialized in manufacturing
Methylamines, Ethylamines, Derivatives of Specialty Chemicals and Natural Products.
BAL for the first time in India tested on an indigenously developed technology and developed it further
over a period of time.
The company has the vast presence all over the world which includes the countries like UK, USA, Latin
America, Canada, Israel, Pakistan, Bangladesh, Oman, Germany, Italy, Egypt, South Africa, Korea,
Taiwan, Spain, France, The Netharlands, Belgium, Norway, Poland, Ukraine, Mexico & Brazil.
Recently company commissioned two new plants, one for Di-Methyl Amine Hydrochloride and the other
for Di Methyl Formamide .Production from both these plants are expected to scale up and stabilized in
near months. Recently company received Certificate of Suitability from EU for their niche product PV P K
30 ( company is the only producer of this product in India) which will help BAL to export this product to
regulated markets.
This company has the following uniqueness

The one and only manufacturer of Morpholine in India with in house developed technology.
One among the very few manufacturers of Morpholine in World.


(An ISO 9001:2008 Company)

SEPTEMBER 30, 2013
(Rupees In Lakhs)

Sr.. Particulars
1. Income from operations
. (a) Net sales / income from operations (Net of excise duty)
. (b) Other operating income
. Total income from operations (net)
2. Expenses
. (a) Cost of materials consumed
. (b) Changes in inventories of finished goods & work-in-progress
. (c) Employee benefits expenses
. (d) Depreciation
. (e) Other expenses
. Total Expenses
3. Profit / (Loss) from operations before other income, finance costs and exce
4. Other Income
5. Profit / (Loss) from ordinary activities before finance costs and exceptiona
6. Finance Costs
7. Profit / (Loss) from ordinary activities after finance costs but before excep
8. Exceptional items
9. Profit / (Loss) from ordinary activities after tax (7+8)
10. Tax Expenses
11. Net Profit / (Loss) from ordinary activities after tax (9-10)
12. Extraordinary items (net of expense)

13. Net Profit / (Loss) for the period (11+12)

14. Paid-up equity share capital (Face Value of each Share Rs. 2/-)
15. Reverse excluding Revaluation Reserves as per balance sheet of previous a
16 i. Earnings per share (before extraordinary items)
. (of Rs. 2/- each) (not annualised) :
. (a) Basic
. (b) Diluted
16 ii. Earnings per share (after extraordinary items)
. (of Rs. 2/- each) (not annualised) :
. (a) Basic
. (b) Diluted

From the financial point of view,company started to report improving performance .

In last FY company reported a sales of Rs.512 Cr and a net profit of Rs.31 Cr .During
the latest September 2013 quarter, the company reported a turnover of Rs.161 Cr
( Rs.126 cr in same period last year) and a net profit of Rs.12 Cr ( Rs.9 Cr)
.Company also distributed a dividend of 40 % .It is expected to close the full year
with an EPS of Rs.12 or more. The only concern is about the debt/loan they carry in
their balance sheet. But, in a recent interview, promoters assure their plans to
reduce the debt substantially in next two years from the current level. This
assurance can be visualized as their increasing confidence in the company, by
hiking their stake through open market purchases in past three quarters.

Even this company started as a small unit, now it grown as a threat to multinational
chemical companies in many niche products. At CMP of Rs.41 ,it is trading at a one
year forward P/E multiple of just 3.5 . Expecting decent upside from current level,
hence recommending a BUY @ CMP Rs.42