Balaji Amines share price target from 2025 to 2030 | Unlocking Growth

Welcome to this article where we’ll delve into the growth potential of Balaji Amines Ltd, a company, in the chemical sector. Over the five years it has shown profitability with investors enjoying a 34% annual return.

In our analysis we will look at the market dynamics, the companys health and performance metrics to project Balaji Amines share price target for the period spanning 2025 to 2030.

The company was founded in 1988 by Mr. V.Ramakrishna and Mr. V. Balasubramanian, Balaji Amines specializes in manufacturing chemicals such as Methylamines, Ethylamines, specialty chemical derivatives and Pharma Excipients. These products are commonly used in industries like pesticides, pharmaceuticals, rubber production, cosmetics and lubricants.

Notably one of Balaji Amines flagship product is Aliphatic Amines—a product that positions the company as a leading manufacturer, in this segment. The company manufactures more than 50% of Aliphatic Amines and its derivatives produced in India.

Earlier India used to import Aliphatic Amines from China but in 2018, 30% of factories in China were shut down due to pollution issues and that helped the Indian Manufacturers to grow their business. 

Some customers of Balaji Amines are Sun Pharmaceuticals, Dr. Reddy’s, Aurobindo Pharma, Teva API, Hetero Drugs, Venky’s (VH Group), Wanbury, ZydusCadila, Indian Oil, Hindustan Petroleum etc.

Global Presence

Balaji Amines exports its products overseas also and earns 19% of its revenues from exports to 50+ countries. The export countries are USA, UK, Argentina, Latin America, Israel and many more.

Manufacturing facilities

Balaji Amines has 5 manufacturing facilities located in Maharashtra and Telangana. The company manufactures 231000 MPTA of Amines and 45000 MPTA speciality chemicals through these facilities. The speciality chemicals are sold under the subsidiary brand name of Balaji Speciality chemicals Ltd.

Balaji Amines share price target table

Financial ratios of Balaji Amines Ltd

Some financial ratios such as market cap, P/E ratio, Debt to equity ratio and ROE provide us with an indication of company’s performance. Let’s analyze Balaji Amines Ltd financial ratios so we have an in-depth view into their operations.

As per market capitalisation estimates of Rs 6808 crores and current share price of Rs 2101 respectively. It achieved 52-week high of Rs 2736 and low of 1873 during its 52 week history.

At its current P/E value of 36.9, compared with 30.4, its P/E is way out of line and this indicates an overvaluation. You might wish to wait a bit until prices drop slightly before considering buying these shares.

Debt of Rs 43.9 crores for this company is relatively minor and easily manageable; their debt to equity ratio stands at only 0.03; further proof that their debt burden is manageable.

ROCE stands at 36.5% while ROE ratio stands at 23.2% – both figures being extremely encouraging indicators that demonstrate how this company is yielding impressive returns to both investors and capitalists alike.

Balaji Amines has found itself under pressure in terms of sales growth for the last year – falling by 36.2% while profits have witnessed an accompanying decrease of 52.4%.

Poor returns of only 1.61% over one year and 6.45% over three years may put off potential investors.

Overall, a company must increase sales and profit to provide investors with greater returns. If investing is something you are considering doing with your hard-earned funds then perhaps wait before purchasing this stock as it could well be overpriced as well.

Balaji Amines share price target 2024

The stock price of Balaji Amines is going through a correction right now. In Dec 2023 the stock hit its all time high of Rs 2736 and since then it has been falling and is currently trading at Rs 2101. 

Current price is very close to the resistance point of Rs 2056. The share price has risen from this point many times before. We expect a bounce back again from here and the price should go up.

The initial price target for Balaji Amines in 2024 is projected to be ₹2723.20.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹2755.60. 

By the end of 2024, the price target for Balaji Amines is expected to potentially reach ₹2810.11, considering bullish market trends.

Balaji Amines share price target 2024 is as follows

Also Read: Biogen Pharmachem share price target

Balaji Amines share price target 2025

One of the expansion plants of n-Butylamine is expected to be commissioned during the fourth quarter of FY24 and another plant of Methylamine will be commissioned around the second quarter of FY 2024 and ’25. 

These plants will increase the production capacity and profit margins for the company because production in large quantities always costs less.

The initial price target for Balaji Amines in 2025 is projected to be ₹3204.85.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹3255.23. 

By the end of 2025, the price target for Balaji Amines is expected to potentially reach ₹3284.69, considering bullish market trends.

Balaji Amines share price target 2025 is as follows

Balaji Amines share price target 2026

Balaji Amines is also working on another project for manufacturing of  Dimethyl ether. The company has already completed the engineering and detailing of the plant at unit-4 and has started the civil works. This plant will commission in the fiscal year 2025-2026 and will definitely improve the production and revenue further.

The outlook is very positive and the long term opportunities are bright. The company is expecting rapid growth in 2026. 

The initial price target for Balaji Amines in 2026 is projected to be ₹3619.73.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹3666. 

By the end of 2026, the price target for Balaji Amines is expected to potentially reach ₹3695.41, considering bullish market trends.

Balaji Amines share price target 2026 is as follows

Balaji Amines share price target 2027

The sales of Balaji Amines have doubled in the last 3 years from Rs 935 crores in 2020 to Rs 2346 crores in 2023. The net profits have also doubled but the company has not been able to give very good returns to its investors in the last one year. 

These trends suggest that the investors believe that despite good profits, the company’s growth prospects are limited. That is why the demand of the stock is less and the price is not rising as fast as it should.

We expect slightly better returns in the upcoming 4-5 years but the jump will not be significant. 

The initial price target for Balaji Amines in 2027 is projected to be ₹3849.65.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹3905.77. 

By the end of 2027, the price target for Balaji Amines is expected to potentially reach ₹3968.32, considering bullish market trends.

Balaji Amines share price target 2027 is as follows

Balaji Amines share price target 2028

Balaji Amines is the largest manufacturer of Aliphatic Amines and it is the only company to develop Indigenous Technology to manufacture Amines. This Indigenous technology will aid the company to reduce the manufacturing cost. It is the sole producer of a few specialty chemicals where the competition is nil.

The initial price target for Balaji Amines in 2028 is projected to be ₹4349.44.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹4385.60. 

By the end of 2028, the price target for Balaji Amines is expected to potentially reach ₹4412.46, considering bullish market trends.

Balaji Amines share price target 2028 is as follows

Also Read: Artemis Medicare share price target

Balaji Amines share price target 2029

Balaji Amines is focusing on R&D to introduce new products for import substitutes for the Indian market. Due to the complex manufacturing process and high fixed costs of the Amines products, this becomes a high entry barrier business which means the company will not have any new competition soon. All the company needs to focus on is to beat the current competition. 

The initial price target for Balaji Amines in 2029 is projected to be ₹4528.48.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹4558.99. 

By the end of 2029, the price target for Balaji Amines is expected to potentially reach ₹4596.36, considering bullish market trends.

Balaji Amines share price target 2029 is as follows

Balaji Amines share price target 2030

The company manufactures Methylamines and its demand is on a rise in India. After local manufacturing the demand for Methylamines is met by imports. Export opportunities also exist. That is why Balaji Amines has launched a Greenfield Project on a 90-acre land in Solapur, Maharashtra for customers in western & southern India.

Phase-1 of the project has been commissioned and Phase 2 and 3 will be commissioned in the coming 12 months. 

The initial price target for Balaji Amines in 2030 is projected to be ₹5066.23.  

With favorable market conditions, the mid-year price target for Balaji Amines could reach ₹5122.50. 

By the end of 2030, the price target for Balaji Amines is expected to potentially reach ₹5179.25, considering bullish market trends.

Balaji Amines share price target 2030 is as follows

Shareholding of Balaji Amines Ltd

Numbers in percentages

Shareholders are the backbone of a company and the shareholding patterns tell us if various kinds of shareholders are losing or gaining interest in the company. Lets analyse the shareholding pattern of Balaji Amines.

Promoters

When we look at the promoters shareholding, it has stayed pretty much the same at 53.7%. This consistent shareholding shows that the promoters have trust over the company and they believe that the company will definitely multiply their money in the coming future.

Foreign Institutional Investors

FIIs have also shown rising interest in Balaji Amines because their holding since 2020 has been increasing consistently. From 1.75% in 2020 to 4.58% in 2023, shows that the FIIs are also expecting good returns. 

Domestic Institutional Investors

Just like FIIs the DIIs are also increasing their stake year on year. The only domestic player invested in Balaji Amines is HSBC Small cap fund that holds 1.43% of the shares. 

Public

Public interest has slightly declined. The public shareholding in March 2020 was 44.33% and currently it is 40.31%. This is a small decline probably because the company has not given any major returns in the last few years.

Overall the shareholding changes do not show any major concerns and all the investors are keeping their stake as it is. 

Conclusion

Balaji Amines Ltd is a great player in the chemical sector. The company is profitable and has made decent average returns of 34% in the last 5 years. However the last one year returns are poor. 

The reason for the poor one year result could be that the investors do not trust the company or they do not have high hopes from the chemical sector companies.

Balaji Amines, has 5 manufacturing facilities and is working on its research and development to produce latest chemical products. The company has great plans to expand and improve profit margins. 

If you wish to invest in Balaji Amines, we would suggest you to buy this stock at a price of around Rs 1800 because at the price of Rs 2101 the stock is a little expensive and may not give you the best of returns. 

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