Balaji Amines jumped as much as 7% in today’s afternoon session. The reason behind this can be attributed to the key developments regarding the company’s expansion plans for the ethyl amines project in the current fiscal.
The company released data, which suggests that it plans to go for capital expenditure of Rs150cr to Rs170cr during the current fiscal year. This will be for the first phase of the company’s Greenfield expansion project under which, Balaji Amines will install capacity for manufacturing 16,500 tonnes of ethyl amines and 9,900 tonnes of dimethyl carbonate.
The significant part of this expansion is the scale of the project and its demand scenario in the domestic market.
The data revealed by Balaji Amines stated that after successfully implementing this, the company will have the largest installed capacity of ethyl amines in the country with nearly 22,500 tonnes per annum. Meanwhile, the present demand for dimethyl carbonate is around 8,000 tonnes in the domestic market, which is fully dependent on imports.
Further, for its agrochemical business, factors such as storage levels in water reservoirs in the country, hike in minimum support price (MSP) of key Kharif crops and expectation of a strong monsoon spread may act as triggers for the company’s prospective growth.
The stock of the company recovered smartly today from the day’s lows to end higher by 4% at Rs554.85 on BSE.
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