3 BALAMINES share price target reports by brokerages below. See what is analyst's view on BALAMINES share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The stock currently trades at 13.1x FY20e EPS of Rs 31.18 and 10.5x FY21e EPS of Rs 38.82. Increased revenues from Balaji Speciality (revenue potential of Rs. 350-400 cr at peak utilization) along with stabilization of Balaji Amines acetonitrile plant and some new capacities of ethylamines and amines derivatives will no doubt buoy topline next fiscal. Post tax earnings is estimated to grow by 24.5% on higher margins and barely subdued volumes. Yet volatile methanol prices continue to remain a concern as it could weigh negatively on margins. Weighing odds, we advise buy rating on the stock with target price of Rs 543 based on 14x FY21e EPS of Rs 38.82 over a period of 9-12 months.
Given the (1) Uncertainty in the ramp up of BSCPL (2) Muted earnings growth prospect (3) Declining return ratios (ROE: 16.1/15.1/13.5%, RoIC: 22.5/21.7/18.8% in FY20E/21E/22E), we prefer Alkyl Amines over Balaji in the Amines space. Maintain BUY with a TP of Rs 490 (13x Dec-21E EPS).
BAL reported muted performance in Q1FY20 consequential to (1) Soft volume off-take by the agrochemical industry, (2) High raw material prices, predominantly Methanol. Hence, we cut our EPS estimates for FY20/21 and arrive at a TP of Rs 452/share based on 13x Sep-21E EPS.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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