Tag: Patterns

Balaji Amines – A niche duopoly

When you a see a table like below in an annual report it immediately stands out. In 24 years

  • Sales are up – 100X
  • Profits are up – 155x

All at a decent ROE, no wonder long term shareholders / promoters have clearly acquired transformative wealth

 

Balaji Amines has come on my radar multiple times in last 10 years, however I gave it pass every time as I havent worked much on industry dynamics. But in 2020 while working on Diamines chemical idea I figured out that only Indian competitor creating capacity is Balaji Amines so I had to study them.

NB – I started tracking Diamines chemical idea in score card and we removed as valuations started to become lofty and after digging through I wasn’t able to figure out how will they remove supplier dependency, so we dropped the idea

The Balaji Amines annual report is must read for anyone who is invested in Amines, here are some of the key takeaways that are worth noting

Before take this course on what are amines and come back

Speciality chemicals is a rising tide

Specialty chemical market in India was valued at Rs. 2,357 billion in FY18 and … Read the rest