“Alkyl Amines Chemicals was incorporated in 1979 with the idea of making India selfsufficient in aliphatic amines. The first plant was commissioned in 1982 at Patalganga to make ethylamine and cyclohexylamines with technology from Leonard Process Company, USA. The capacity was expanded in 1986 in the existing plant and another plant was set up in 1992 to make methylamines. Alkyl Amines Chemicals is a global supplier of amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical and water treatment industries, among others. Alkyl's commitment to customer satisfaction by delivering quality products and services has helped it to become one of the world's leading amine manufacturers.”
“The company has standards, the ISO 9001 certification has been awarded to our both sites, Patalganga & Kurkumbh for the manufacturing sites. The plant set up in technical collaboration with Leonard Process Co Inc, US, in 1962. A second plant was set up in 1991 to manufacture ethyl and methyl amines in technical collaboration with Acid Amine Technologies Inc, US. AACL's products find applications in agro chemicals, pesticides, rubber chemicals, water treatment chemicals and other specialty chemicals. Some of the new products developed by the company are diethyl hydroxylamine (DEHA), dim ethyl cyclohexylamine (DMCHA), specialty intermediates and insect repellents such as diethyl toluamide (DETA), besides dim ethyl amino propylamine (DMAPA), various hydrochlorides and specialty corrosion inhibitors.”
“Alkyl Amines Chemicals Ltd has reported net profit of Rs 65.10 million for the quarter ended on March.31, 2012 as against 25.10 million in the same quarter last year, an increase of 159.36%. It has reported net sales of Rs 809.00 million for the quarter ended on March.31, 2012 as against Rs 646.40 million in the same quarter last year, a rise of 25.15%. Total income grew by 25.14% to Rs 814.30 million from Rs.650.70 million in the same quarter last year. During the quarter, it reported earnings of Rs 6.38 a share.”
“At the current market price of Rs.98.20, the stock is trading at 4.81 x FY13E and 4.13 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.20.42 and Rs.23.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 32% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.99 x for FY13E and 1.77 x for FY14E. Price to Book Value of the stock is expected to be at 0.91 x and 0.75 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 111 for medium to long term investment,” says Firstcall Research report.
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