Motilal Oswal's research report on Alkyl Amines Chemicals
Alkyl Amines Chemicals (AACL) reported a muted operating performance in 2QFY26 as EBITDA declined 5% YoY. Despite some raw material cost pressure, EBITDA margins expanded marginally by 30bp YoY to 18%. While volume growth in 1HFY26 was marginally higher on a YoY basis, the momentum is expected to remain muted in the near term due to prevailing demand softness across key end-user industries, ongoing geopolitical uncertainties, and heightened competitive intensity from Chinese manufacturers. Additionally, global sanctions and trade restrictions are likely to continue to disrupt supply chains.
Outlook
We estimate a CAGR of 6%/7%/8% in revenue/EBITDA/PAT over FY25-28 and maintain our earnings estimates. We value the stock at 45x FY27E EPS to arrive at a TP of INR1,900. Reiterate Neutral.bus
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Alkyl Amines Chemicals_11112025_Motilal Oswal