We remain positive on Balaji’s strategy to focus on import substitution opportunities. In the process, the management appears nimble in implementing change in technology, process and products to edge out global competition
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PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Balaji Amines (CMP: Rs 3,410; M Cap: Rs 11,047 crore) continues to surprise on operational and strategic execution. A sharp ramp-up of the new ethylamines plant and the decision to add new capacity for acetonitrile is a case in point. In the near term, while raw material pricing pressure will remain, we are enthused that successful execution of capex projects, technology upgradation and resultant operating leverage have helped in uplifting the sustainable level of EBITDA margins. Q1 result highlights (image) Balaji’s Q1FY22…
