Alkyl Amines (ALKYLAMINE)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer