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Alkyl Amines buy or not

 Not many of us know how to analyse a chemical sector stock. Through this blog, I will try to help you understand the industry in the simplest possible way. Also, we will end the discussion with a comparison of Alkyl Amines with Balaji Amines and other chemical companies like Deepak Nitrite. Table Of Contents 1. Alkyl Amines Business Alkyl Amines Chemicals Ltd. was started   in 1979 by  Mr Yogesh Kothari . It  operates in  a very small segment of the chemical industry -  the   amines  and is currently one of the largest manufacturer in India (around 50%), along with Balaji Amines. Amines play a major role in the pharmaceutical industry and agrochemicals. These are primarily used as a solvent. Alkyl Amines' Business comprises of 3 major segments:- • Aliphatic Amines Methyl amines and Ethyl amines are the aliphatic amines used to make  different types of derivatives. These can also be sold directly and are used by Alkyl Amines t o produce vario...
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Should I buy IEX for bonus | IEX Fundamental Analysis | IEX record date

Indian Energy Exchange (IEX) is in news again due to the announcement of the board confirming the issue of bonus shares on 21st October 2021. So, are you thinking of buying IEX at the current levels? If yes, then this post will cover all you need to know before making your decision.

    1. IEX business

    The greatest advantage is the monopoly IEX holds in its sector, till now (NTPC is also planning to enter the power trading sector). This energy trading industry is in a growth stage and has huge potential. Thus, IEX being the only major player (more than 95% market share) providing a platform for electricity/power trading activities is expected to show further growth in the future.


    2. IEX stock fundamentals

    Next thing you should know are the fundamentals, which are too good for IEX.

    From the company's annual reports, let us do a 6 pointer analysis :-

    • Sales - Increasing every year ✅
    • Profits - In an uptrend ✅
    • Operating Profit Margin - Above 80% ✅
    • ROE and ROCE - Acceptable (ROE 5Yr 45.2 % ROCE 5Yr 62.3 %) ✅
    • Debt -Debt free (negligible debt to equity ratio of 0.02) ✅
    • Promotor holding - 0 (Majority shares are heldby public)⛔ 

    Other important pointers to consider:-

    • Operating Cash Flow - Positive and Increasing ✅
    • Dividend payout - Healthy ✅


    3. IEX Future Prospects

    IEX is trying to leverage the technology and has focus on launching new products to simply the trading experience in power sector. It has already come up with products like Real-Time Market and working on more products including Cross Border Trade and Green TAM and DAM, as per the company management.


    4. Why is IEX stock price rising?

    Let's now talk about the reason for the sudden upward movement in the stock price.

    1. IEX has recently been added to F&O segment leading to surge in volumes and the price too.

    2. Government announced that options trading will be allowed for commodities. This gave a boost to shares of IEX and MCX.

    3. Adding to this, the company has now decided to issue bonus shares on 21st October. This led to further surge in IEXs share price.


    5. IEX bonus date

    As the per the letter filed by the exchange to SEBI:-

    The Board of Directors of the Company in their meeting scheduled on Thursday, October 21, 2021, shall consider the proposal for declaration of Bonus Issue of Equity Shares subject to the approval of the shareholders of the Company. 

    6. Common Questions

    • Should I buy IEX now for swing trade?

    Looking out for IEX share price targets? As per Ravi Singhal, the Vice Chairman at GCL Securities:-

    One can still buy this counter at current market price for the one month target of ₹1170 maintaining stop loss at ₹877 per share levels.

    • Should I buy IEX for long term?

    The stock has already generated multibagger returns and has complete potential of further upside, looking at the company fundamentals. To understand the various pointers to be considered while analysis a stock, do check out How to choose stocks for long term investment.

    • When should I buy IEX to get bonus shares?

    The record date has been fixed as 6th December 2021. You have to purchase IEX atleast one day prior to the ex-date to be eligible for bonus.

    • What is IEX bonus issue ratio?

    The bonus ratio for IEX has been decided to be 2:1. So, for every 1 share held, the shareholders would be getting 2 extra shares.


    7. Topics you might be interested in


    Frequently Asked Questions (FAQs)

    1. What does bonus shares mean?

    Bonus shares are free shares given to the shareholders of a company in a ratio decided by the company. The share price adjusts accordingly (in a similar ratio) and becomes more affordable.

    2. When should I buy IEX to get bonus?

    You have to purchase IEX atleast one day prior to the ex-date declared by the company to be eligible for bonus. The record date has been fixed as 6th December 2021. 

    3. Who gets bonus shares ?

    All the shareholders of a company who own the share on the ex-bonus date are eligible for bonus shares. IEX bonus issue record date will be decided by the board members after shareholders' approval for bonus issue.

    4. Is IEX overvalued?

    Looking at the P/E ratio which is currently 108 for IEX, the stock seems to be highly overvalued. But, the stock has complete monopoly in its sector and thus enjoys such a premier PE and is likely going to continue to do so.

    5. Who owns IEX?

    IEX is a power trading exchange controlled by the Central Electricity Regulatory Commission (CERC).

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