Skip to main content

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...
Post a Comment

Should I buy Laurus Labs | Laurus Labs fundamental analysis | Laurus Labs buy price

Interested in a stock from Pharma sector? Ready to take a little higher risk? Looking out for a share capable of generating multi bagger returns? Then, this stock is for you.

    Laurus Labs business

    Is Laurus Labs a good company?

    Laurus Labs is a small cap pharmaceutical company operating as a contract manufacturer(CDMO business), involved in APIs (low cost advantage) and continuously growing in terms of new products and patents.

    Laurus Labs Annual Reports

    On analysis of annual reports (feel free to skip this section, although I have tried to make it simple to understand)- The EBITDA increased considerably(150+%) due to forward integration in formulations. High R&D capabilities have aided in further cost cutting(50%) and capturing market share in new products(30+%) over the time. The ROE and ROCE of the company are up to the mark consistently (even if we ignore the covid scenario).


    Why is Laurus Labs stock price increasing?

    Another good news is that Laurus Labs will become a part of F&O segment from 29th October 2021. (This will increase the volumes and in turn the price). So, you can consider adding this stock, but give a limited weightage only.

    Laurus Labs cons

    The only negative point about Laurus is a slight debt (which is being wisely utilised for capacity expansion and has been coming down - good sign, but you will have to keep reviewing regularly that it stays in control) and lesser (and decreasing) promotor holding.

    Should I buy Laurus Labs now? 

    So, my final verdict would be to understand your risk appetite first. You can also choose Divis if you are looking out for risk on the lower side.

    It is easy to invest in an already well-known company but takes considerable research to explore and pick new businesses which can grow multifold times and give multibagger returns.


    Topics you might be interested in


    Frequently Asked Questions (FAQs)

    1. Should I invest in Laurus Labs for long term?

    Laurus Labs is a small cap company and thus the risk is on the higher side. It is continuously expanding its business and increasing profits. If you are ready to take risk for more returns, then Laurus Labs can be a good pick.

    2. Why is Laurus Labs stock rising?

    Laurus Labs has entered the Futures and Options segment from 29th October 2021. This has led to increase in volumes and surge in stock price.

    3. Which is better Laurus Labs or Divis Labs?

    It will not be correct to compare Laurus Labs with Divis Labs. Though both belong to the Pharma industry, they have focus on different segments. Divis is already a large cap company working primarily on R&D and APIs, while Laurus is also into formulations apart from being in CDMO.

    4. Is Laurus Labs debt free?

    No, Laurus Labs has a slight debt which is being used for capacity expansion plans. Also, the debt is continuously coming down each quarter, the latest Debt/Equity being at 0.57.

    5. Is Laurus Labs a multibagger?

    Laurus Labs has delivered more than 700% returns in a span of just 3 years. So, it can be termed as a multi bagger.



    Thanks!🙂

    Labels:

    Comments

    Post a Comment

    Popular posts from this blog

    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...
    Post a Comment
    Read more

    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. Table Of Contents 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%  ✅...
    Post a Comment
    Read more