Alkyl Amines (ALKYLAMINE)
Slow GrowerFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,916.9 |
| Market Cap | ₹9,804.21 Cr |
| P/E Ratio | 43.67 |
| ROCE | 18.66% |
| ROE | 12.88% |
| Dividend Yield | 0.76% |
| Profit Growth | 91.4% |
| Debt/Equity | 0 |
| Sales Growth | 27.7% |
| Free Cash Flow | ₹67.57 Cr |
| Promoter Holding | 72.03% |
| 52-Week Range | ₹1,212 — ₹2,116.8 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹299.81 |
Strengths
- Zero debt (D/E 0.00) and promoter holding of 72.03% provide financial stability and aligned ownership.
- Positive free cash flow of ₹68 Cr and ROCE of 18.66% show decent capital efficiency.
- Altman Z-Score of 4.69 indicates a strong solvency position.
- Latest quarter delivered ₹354 Cr sales and ₹42 Cr profit, showing ongoing operations remain profitable.
Concerns
- Sales growth is flat at -0.48% and profit growth only 1.19%, yet the stock trades at P/E of 42.02.
- Valuation is far above intrinsic estimates: Graham Number ₹467 and DCF value ₹98, leaving margin of safety deeply negative at -217.78%.
- PEG ratio of 6.62 signals the market is pricing in growth that current fundamentals do not support.
- Negative EV/EBITDA of -34.72 is anomalous and warrants a closer look at earnings quality.
AI Analysis
At first glance Alkyl Amines has the balance sheet I like: no debt, promoter holding 72%, and ROCE near 19%. But Graham taught me to pay for growth only when growth exists. Sales actually fell 0.48% and profit rose just 1.19%. That is a stagnant business, not a compounder. At ₹1,520, the P/E is 42 and P/B is 5.54, while book value is ₹274. The Graham Number is ₹467 and even a conservative DCF says ₹98. The margin of safety is negative 218%. In other words, I am paying a wonderful price for a mediocre recent performance. The moat may be real - amines are niche, and zero debt plus positive free cash flow of ₹68 Cr gives resilience. But a 12.88% ROE is not exceptional; ROCE of 18.66% is decent, but if sales are flat, retained earnings don't translate into growth. The Piotroski score of 6 suggests moderate health, but the PEG of 6.62 is absurd. The latest quarter, sales ₹354 Cr and profit ₹42 Cr, does not justify a ₹7,591 Cr market cap. Altman Z of 4.69 says no bankruptcy risk, but this is a valuation problem, not a solvency problem. I would call this a slow grower wearing a growth-stock mask. As a value investor, I'd wait for either a much lower price or clear evidence of renewed volume and revenue growth. Extraordinary popularity has a way of reverting to ordinary returns.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer