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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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Why is happiest minds company good to invest?

Looking out for investment options from the IT industry? If you are bothered by the hype created about "Happiest Minds" and unsure whether to invest or not, then this post is certainly for you. I will be covering the fundamentals, technicals and valuations of Happiest Minds in this post.


    Let's start with FUNDAMENTAL ANALYSIS.

    1. Happiest Minds business analysis

    Happiest Minds is a fundamentally strong company with a bright future. WHY? Because it is working on latest and futuristic technologies including

    AI & ML (robotics, IoT), cloud computing, blockchain (underlying technology for Cryptocurrency), drones and much more. 

    2. How is Happiest Minds different?

    Happiest Minds Technologies has majority of clients in digital business segment, diversified across geographies (unlike TCS or HCL or Wipro which have major clients in BFSI).

    Also, the executive chairman and the main promoter Ashok Soota has prior experience in companies like MindTree and Wipro and thus can be trusted.

    Related : How to choose stocks for long term investment


    3. Happiest Minds financial ratios

    From the company's annual reports, 

    • Sales - Increasing every year ✅
    • Profits - in an uptrend ✅
    • ROE and ROCE - acceptable (ROE 5Yr 27.2 %  ROCE 5Yr 18.8 %) ✅
    • Debt -slight debt with debt to equity ratio of 0.3 ⛔
    • Promotor holding - consistent ✅

    Other important pointers to check as per the sector:-

    •  Employee numbers - Rising ✅
    •  R&D cost - Rising ✅

    R&D expenditure increased from Rs.0.14 million in FY19 to Rs.152.3 million in FY20.


    Also, attaching a snap to validate the authenticity of the above data. 

    Happiest Minds CAGR

                                  Happiest Minds CAGR                                                                           
                                   Credit - Screener


    So, 6 out of the 7 criteria are positive for Happiest Minds which makes it indeed a strong share to be a part of the long term portfolio.

    Now, moving on to TECHNICAL ANALYSIS

    4. Happiest Minds Technicals

    Currently the stock has been put in ASM Stage 4. Thus, it will take around 3 months (minimum) to come out of the ASM list. This will lead to volume loss (no intraday allowed) and can cause further decline in price (not very huge though).

    So, if you plan to invest in Happiest Minds stock:-

    Consider putting your first chunk anywhere around 1350. Good support zone. 

    Next entry can be at 1250.

    It has already corrected a lot from it's all time high of 1600+ levels. Also, always try to BUY ON DIPS.


    Finally, let's study the VALUATIONS of Happiest Minds Technologies Ltd.

    5. Happiest Minds valuations


    As per the PE ratio, the stock is trading at premium valuations (as the PE is higher than peers and the average industry PE). 

    So, will there be a correction?

    High PE does not indicate that a correction is bound to happen. The market realises and acknowledges the high growth present in Happiest Minds and thus gives it high valuations. Obviously, the stock is no longer UNDERVALUED, but can be a wealth creator for investors.


    7. Topics you might be interested in


    Hope the post was helpful. Do let us know your opinion about Happiest Minds for investing and also comment if you have any queries. Stay tuned for more interesting posts.

    Happy Investing!



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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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