Recent Price Movement and Market Context
On 12 Jan 2026, Alkyl Amines Chemicals Ltd's stock touched an intraday low of Rs.1506.6, representing a 3.28% drop during the trading session. The stock has been on a downward trajectory for two consecutive days, resulting in a cumulative loss of 4.9% over this period. This decline outpaced the Specialty Chemicals sector's performance, underperforming by 1.22% on the day.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning reflects the stock's struggle to regain upward traction in the near term.
Meanwhile, the broader market has also faced pressure. The Sensex opened 140.93 points lower and closed down by 402.81 points at 83,032.50, a 0.65% decline. Despite this, the Sensex remains within 3.77% of its 52-week high of 86,159.02, with its 50-day moving average still positioned above the 200-day moving average, indicating a mixed market environment.
Long-Term Performance and Valuation Metrics
Over the past year, Alkyl Amines Chemicals Ltd has delivered a total return of -13.78%, significantly lagging behind the Sensex's 7.23% gain during the same period. The stock's 52-week high was Rs.2448.8, highlighting the extent of the recent price erosion.
Financially, the company has exhibited subdued growth trends. Its operating profit has declined at an annualised rate of -5.57% over the last five years, reflecting challenges in expanding profitability. The latest quarterly results for September 2025 showed flat performance, with the Profit After Tax (PAT) at Rs.42.94 crores, down 8.0% compared to the previous four-quarter average.
Additionally, the quarterly Earnings Per Share (EPS) stood at Rs.8.39, marking the lowest level in recent periods. The Debtors Turnover Ratio for the half-year was notably low at 0.66 times, indicating slower collection efficiency.
Despite these factors, the company maintains a Return on Equity (ROE) of 12.6%, although this is accompanied by a relatively high Price to Book Value ratio of 5.5, suggesting that the stock is valued expensively relative to its book value. The Price/Earnings to Growth (PEG) ratio is elevated at 5.3, signalling that earnings growth has not kept pace with valuation multiples.
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Comparative Performance and Market Position
Alkyl Amines Chemicals Ltd has consistently underperformed the BSE500 index over the past three years, with negative returns in each annual period. This trend underscores the stock's relative weakness within the broader market and its sector.
The company's market capitalisation grade is rated at 3, reflecting its mid-tier size within the Specialty Chemicals sector. Its Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from Hold on 10 Nov 2025. This downgrade reflects the deteriorating financial and price performance metrics.
Despite the challenges, the company exhibits strong management efficiency, with a high ROE of 19.46% reported in some assessments, and maintains a low average Debt to Equity ratio of 0.01 times, indicating a conservative capital structure with minimal leverage.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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Summary of Key Financial Indicators
The company’s recent financial indicators highlight areas of concern. The Debtors Turnover Ratio at 0.66 times is the lowest recorded, suggesting slower realisation of receivables. The quarterly PAT decline of 8.0% and EPS at Rs.8.39 reflect subdued profitability pressures.
Operating profit’s negative annual growth rate of -5.57% over five years contrasts with a modest 8.3% rise in profits over the past year, indicating uneven earnings trends. The valuation metrics, including a Price to Book Value of 5.5 and PEG ratio of 5.3, point to a premium pricing that may not be fully supported by earnings growth.
Technically, the stock’s position below all major moving averages and its recent 52-week low of Rs.1506.6 underscore the prevailing downward momentum.
Market and Sector Dynamics
The Specialty Chemicals sector, in which Alkyl Amines Chemicals Ltd operates, has experienced mixed performance amid broader market volatility. The sector’s relative performance on the day was stronger than the stock’s, with Alkyl Amines Chemicals Ltd underperforming by 1.22%. This divergence highlights company-specific factors influencing the stock’s decline.
While the Sensex remains near its 52-week high, the index’s recent dip and trading below its 50-day moving average suggest cautious sentiment prevailing in the market.
Conclusion
Alkyl Amines Chemicals Ltd’s fall to a 52-week low of Rs.1506.6 reflects a combination of subdued financial performance, valuation concerns, and technical weakness. The stock’s consistent underperformance relative to benchmarks and peers, coupled with flat recent results and low turnover ratios, contribute to the current price levels. The company’s strong management efficiency and low leverage provide some stability, but the prevailing market conditions and financial metrics have weighed on investor sentiment.
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