Balaji amines limited: Deep Analysis for value investors

7 พ.ค. 2023

Balaji amines is going through a deep cyclical price correction , due to fallen demand of amines and amines derivatives in Pharmaceutical industry, Petrochemical, and specialty chemical sectors, surge in raw material cost and lower demand overall affecting earnings. Thus amine stocks have seen 50 % to 60% price correction. But over the past 3 decades amines industries has been on an average rising 10% to 15 % per annum making over 500x times over multi decade returns for its long-term investors. Amines industry also has high barrier to entry in its business, they cannot be imported nor exported over long distance due to associated combustible hazards, so they can act as regional monopolies in longer run.
Deep cyclical correction and stock going through maximum pain is perfect opportunity where value investors can time their bets and wait patiently for profitable cycle to emerge and reward them. Risk is already factored and negated, any further down side becomes an opportunity to pyramid upon existing thier investment.