Alkyl Amines Chemicals surges 8% on healthy outlook; zooms 46% from May low

Business Standard

25-06-2025

Alkyl Amines Chemicals share price: Shares of Alkyl Amines Chemicals hit an eight-month high of ₹2,368, surging 8 per cent on the BSE in Wednesday's intra-day trade amid heavy volumes on a healthy business outlook.
The stock of specialty chemicals firm is trading at its highest level since October 2024. It had hit a 52-week high of ₹2,497.95 on September 19, 2024. The stock has bounced back 46 per cent from its previous month low of ₹1,622 touched on May 9, 2025.
Thus far in the calendar year 2025, Alkyl Amines Chemicals has outperformed the market by gaining 28 per cent, as compared to a 5 per cent rise in the BSE Sensex. Track LIVE Stock Market Updates Here
Alkyl Amines outlook
Alkyl Amines Chemicals has established a leading position in the domestic market and a presence in the international market with a reputation for reliable service and quality products. For the financial year 2025-26, the management said the company's focus will continue on sustainable growth by taking measures for increasing its market share of existing products and also introducing new products.
The company's customers in the agrochemicals and pharmaceuticals sectors continue to face global competition from Chinese manufacturers resulting in business uncertainty. This has impacted sales of the company's products to major customers. Dumping of low-price imports of Acetonitrile continues to increase, resulting in a reduction in its sales and creating margin pressures.
Alkyl Amines Chemicals in its FY25 annual report, said that the company has applied for an anti-dumping duty on Acetonitrile imports and is awaiting approval from the Ministry of Finance. The company's sales to the US of total sales is around 4.5 per cent. Change in USA tariffs on some of the company's products may have an impact on volumes and margins for such sales. However, with the global growth of chemicals focused more on Asia, it is expected that there will be further growth in the chemical industry.
In order to meet the growing demand for the company's products, a newly set up plant at an investment cost of ₹400 crore at its existing Kurkumbh site, Maharashtra, for enhancing the manufacturing capacity of Ethyl Amines is fully operational. During the financial year 2025-26, the management expects the company's investments in various other projects to add to both top-line and bottom-line.
Brokerages' view on Alkyl Amines Chemicals
Alkyl Amines Chemicals increased its research and development (R&D) spend to ₹890 crore in FY25 (0.6 per cent of sales), focusing on new product development, process efficiency, and sustainability. It has developed three new products, one set for launch in FY26, with a growing emphasis on value-added innovation and environmental impact reduction.
The company expanded aliphatic amines capacity by ~30 per cent in FY24 and is entering higher margin specialty products. Motilal Oswal Financial Services estimates a revenue/EPS CAGR of 11 per cent/14 per cent over FY25- 27. However, pricing pressure from imports and certain commoditised products poses risks, the brokerage firm said.
Management is hopeful of 10-15 per cent volume growth in FY26 but indicates pricing pressure may be sustained, due to overcapacity in the base amines segment. Alkyl Amines Chemicals has set an ₹150 crore FY26 capex target and expects the new products facility to be completed by December 2025-January 2026.
Regarding anti-dumping duties on acetonitrile, management expects a favourable decision from the Ministry of Finance by late Q2FY26, analysts at Elara Capital said. The brokerage firm expects the company to continue to face margin pressure, due to overcapacity in ethyl amines and its specialty chemicals products. Therefore, analysts decrease EPS of FY26E by 3 per cent and FY27E by 9 per cent.