Balaji Amines - Now an Operator Stock?

Balaji Amines having its 52 week high at Rs. 2,958 on 25th May, 21, with low at Rs. 490 on 30th June,20, was recommended as BUY by us many times in the year 2020, with first buy call given at Rs. 460 on 24th June, 2020 and last at Rs. 842 on 29th Oct 2020.

It is interesting to see its price movement of last 2 months, with stock moving between Rs. 2,500 to Rs. 2,958, from 17th May till date, and now ruling at Rs. 2,670, inspite of good Q4 numbers seen from the company, with Q4 FY21 EPS at Rs. 26 and FY 21 EPS at Rs.73.50 on consolidated basis, making stock rule at a PE of 36x, which is seen TOO HIGH for this cyclical industry. This is important to note that Q3 EPS was at Rs. 23.14, showing QoQ growth of just 12%, hinting of margins seen peaking out.  

We carried a piece here of yesterday, giving caution on penny stocks. But in some fancy high priced stocks also, we are seeing OPERATOR GAME, where Media and Experts there on TV Channels are recommending these fancy high priced stock, to trap small and retail investors.

Its peer Indo Amines share price traded between 115-165 in last 1 month, with stock now ruling at Rs. 168, against its life high of Rs.179. FY21 EPS of Indo Amines is at Rs. 10.70 making it rule at a PE of sub 16x, inspite of Q4 EPS seen at Rs. 4.74 and Q3 EPS at Rs. 3.35.

So, operator game is now seen in fancied high priced stocks, also need caution, while riding momentum in such stocks can be more dangerous than CORONA.

This is not a buy or sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.