1. At a Glance

Balaji Amines, the largest aliphatic amine producer in India, is like that gym bro who just announced a massive new workout plan — right after spraining his ankle. Sales are down 12% YoY, profits down 24%, yet they’re pumping ₹750 Cr into a mega-project subsidiary. Stock is trading at a P/E of 33.8 — more expensive than most of its chemical cousins — even though ROE has slipped below 9%.

2. Introduction

Born in Solapur but shipping chemistry to over 50 countries, Balaji Amines makes everything from methylamines to exotic derivatives for pharma, agrochemicals, paints, and even rocket fuel (yes, seriously). For years, it surfed India’s manufacturing upcycle, with sales peaking above ₹2,300 Cr in FY22. But 2024–25 has been a cold shower — weak end-user demand, Chinese dumping, and global destocking turned the high-growth curve into a pothole.

Yet, in true chemical entrepreneur spirit, management’s response has been to build more capacity. The equivalent of buying a bigger fridge when your existing one is half-empty. The ₹750 Cr capex at subsidiary Balaji Speciality Chemicals aims to produce hydrogen cyanide and sodium cyanide — because what’s life without a little poison in your portfolio.

3. Business Model (WTF Do They Even Do?)

Core Segment (98% revenue)– Amines & Speciality Chemicals:

• Amines: Methyl & Ethyl Amines, Amino Ethanol, Acetamide, and more — feeding pharma, agrochemicals, rubber, and performance chemicals.
• Derivatives: Hydrochloride forms for pharma and pesticides.
• Specialty Chemicals: Morpholine, Acetonitrile, DMF, N-Ethyl-2-Pyrrolidone — used in water treatment, solvents, and intermediates.

Other Segment (2–3% revenue)– Hospitality:

• Balaji Sarovar, a 5-star Solapur hotel. 69% occupancy, ~₹4,957 ARR. A nice side hustle, but let’s face it — not moving the needle.

Their model is to produce scale-driven, high-purity chemicals at integrated plants, dominate domestic