Long Term Investment Prospects - Balaji Amines (Tech+Funda)Balaji Amines is backed by a strong management team which aspires to be the largest manufacturer of every chemical they produce. With the aim, currently it is undergoing continuous capex and that is why see lower profit margins. However, with an increasing capacity, profits are still growing almost every quarter (though with lower margin!).
Notably, this time Balaji Amines beaten the margins of a profit margin master competitor Alkyl Amines as well. Balamines is facing adversity by industry sell off and not a company level performance problem. With a disciplined execution of management agenda, company seems to have passed over raw material price hikes well in time and that is why it continued enjoying stably high opm of 28% (compared to 18% of Alkyl).
Technical indicators:
1. When drawn almost a life-time Fibonacci, it seems to be hovering between 50-61.8% levels and consolidating positively
2. When drawn Fibonacci from life time high to the low of down trend, it seems to have returned twice from 38.2% and now, taking support again at around 3100 level
3. After falling to the bottom of the downtrend, stock is consolidating in bigger range, but with positive RSI divergence every time. That is an indicator of healthy accumulation in the counter
4. If it again respects the support level at around 3100-3000, then it will become a stronger psychological support zone and hence investing at these levels is most favorable risk reward level for investing
Resistances:
3230, 3390, 3450. 3740
SL: 2800
Disc.: This is not a buy recommendation. This is just for study purpose and I am not a SEBI registered advisor. I may be holding in all or any of the studies presented by me.
