🧾 At a Glance
Indo Amines Ltd, a ₹1,170 Cr specialty chemical company, has quietly compounded its profit at 34% CAGR over 5 years — yes, while most of us were still figuring out what GPT stands for. Operating in niche chemical segments, it supplies everything from dyes to fragrances. But with rising capex, growing public shareholding, and improving return ratios, is this just a small-cap hustle or a chemical cocktail ready to explode?
1️⃣ WTF Do They Even Do?
Indo Amines Ltd (IAL) manufactures fine, specialty, and performance chemicals.
📦 Product use cases across:
- Agrochemicals 🌾
- Pharmaceuticals 💊
- Printing inks & pigments 🖨️
- Home and personal care 🧴
- Flavors & fragrances 👃
- Surfactants & rubber chemicals 🧼🛞
Basically, if your life smells nice, feels soft, or grows food – chances are Indo Amines had something to do with it.
2️⃣ Financials – Profits, Margins, ROE, Growth 📈
5-Year Performance
| Metric | FY20 | FY25 | CAGR |
|---|---|---|---|
| Revenue | ₹479 Cr | ₹1,079 Cr | 18% |
| Net Profit | ₹13 Cr | ₹56 Cr | 34% |
| OPM | 9% | 9% | Steady |
| ROE | ~19% | 19.3% | Consistent |
💡 Takeaway: Consistent profitability with improving cash flow. Not a “turnaround story”, but a “turning-up-every-year” one.
3️⃣ Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Current Price | ₹161 |
| P/E | 20.9x |
| Book Value | ₹43.7 |
| P/B | 3.7x |
| PEG Ratio (5Y) | ~0.6x |
| ROE | 19.3% |
🧮 Fair Value Range:
Assuming 20–25% EPS CAGR, terminal PE range of 18–24x, FY26E EPS ~₹9.5–10:
👉 FV Range = ₹170 to ₹240
So, at ₹161, it’s sitting near the lower band of reasonable – not a steal, but not insanity either.
4️⃣ What’s Cooking – News, Triggers, Drama 🌶️
- Volume Spike 📈: NSE/BSE recently sought clarification on sudden volume surge. Company said: “Nothing to disclose, boss. Market is just excited.”
- Promoter Moves: While long-term promoter holding is down 11% over 3 years, it increased by 1.12% last quarter.
- Capex Game On: Fixed assets jumped from ₹198 Cr in FY23 to ₹265 Cr in FY25. Someone’s loading up for expansion.
5️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Debt | ₹284 Cr |
| Equity | ₹317 Cr (Incl. reserves) |
| D/E | ~0.9x |
| Interest Cover | ~4x |
🧠 Manageable leverage with consistent repayments and improved cash from operations (₹91 Cr in FY25).
6️⃣ Cash Flow – Sab Number Game Hai 🎲
| Year | CFO | CFI | CFF | Net Change |
|---|---|---|---|---|
| FY24 | ₹70 Cr | ₹(27) Cr | ₹(41) Cr | ₹2 Cr |
| FY25 | ₹91 Cr | ₹(89) Cr | ₹(7) Cr | ₹(5) Cr |
🟢 Healthy operations
🔴 Investing heavily (Capex or dreams?)
🟡 Financing outflows – not raising fresh debt irresponsibly
7️⃣ Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 18.3% | 🔥 Solid |
| ROE | 19.3% | 🔥 Strong |
| OPM | 9% | 🟡 Average for sector |
| Debtor Days | 90 | 🔴 Slightly high |
| Cash Conversion | 96 days | 🔴 Working capital intensive |
👀 Not bad, but not Vinati Organics either. Margins could be better.
8️⃣ P&L Breakdown – Show Me the Money 💸
- FY25 Sales: ₹1,079 Cr
- EBITDA: ₹101 Cr
- Net Profit: ₹56 Cr
- EPS: ₹7.7
Margins remain ~9% over 5 years, showing steady but not explosive pricing power. That said, the company has not reported any major loss-making quarters since FY19.
9️⃣ Peer Comparison – Who Else Is in the Game?
| Company | MCap (Cr) | P/E | ROCE | OPM | EPS | Price |
|---|---|---|---|---|---|---|
| Indo Amines | ₹1,170 | 20.9x | 18.3% | 9% | ₹7.7 | ₹161 |
| Deepak Nitrite | ₹27,074 | 38.8x | 16.6% | 13% | ₹50 | ₹1,985 |
| Vinati Organics | ₹20,431 | 49.2x | 20.6% | 26% | ₹41 | ₹1,969 |
| Atul Ltd | ₹21,854 | 45.2x | 12.7% | 16% | ₹106 | ₹7,415 |
🔍 Indo Amines is cheapest among the lot by valuation, but it also comes with slightly lower operating metrics and less brand recall.
🔟 Miscellaneous – Promoters, Public, FII 👀
- Promoter Holding: 58.4% (down from 69.3% in Jun 2022)
- Public Holding: Up to 41.5% – major retail interest
- FII: 🫥 Practically absent
- No. of Shareholders: Up from 20,000 to 36,000+ in 2 years – retail party has started
🧠 EduInvesting Verdict™
💬 “Indo Amines isn’t the next Deepak Nitrite… but it might just be the prequel.”
📦 Specialty chemicals? Check.
📈 34% profit CAGR? Check.
💰 Under ₹1,200 Cr market cap? Check.
🔋 Expanding capacity and positive operating cash flow? Yep.
It’s a quiet compounder in a loud sector. You won’t see it trending on Finfluencer reels yet – but in 2 years, it might just be the “I told you so” stock your nerd friend bought in 2024.
Fair Value Range: ₹170–240
(Derived using FY26E EPS of ₹9.5–10, with PE multiple of 18–24x)
Just keep an eye on debt, working capital creep, and that OPM. Otherwise, this one’s cooking just fine.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Indo Amines, Specialty Chemicals, Multibagger Watchlist, Smallcap Stocks, Fine Chemicals, Chemical Stocks, ROCE, EduInvesting
