Diamines & Chemicals Ltd

Current Market price on the date of publishing this report-: 430 Rs.

Introduction

Incorporated in 1976, company is engaged in the manufacture and sale of Ethyleneamines. The business was founded in 1976 and specialises in the production and selling of ethyleneamines. Its production facility is in the PCC District of Vadodara. The company’s goods are used in the trade industry segments such as pharmaceuticals, agro-chemicals, dyes and pigments, and so on.

For more than two decades, the company claims to have been the lone manufacturer of ethyleneamines in the Indian subcontinent. The company’s facility was built entirely with indigenous R&D and experience, and it is one of only 6 to 8 businesses in the world with proprietary technology for the production of ethyleneamines.

It caters to a wide range of Decent Consumers, ranging from Bulk Medications (Quinolones, Antihistamines) to Fungicide – Insecticide, Polyamide resins, Gas Sweetening, Chelants, Textile Auxiliaries, Water Purification Chemicals, Paints and Adhesives, Chemical Syntheses, Lube Oil Additives, and so on. It is a major provider of PIPERAZINE to the medicinal and Gas Sweetening Application sectors.

In recent years, the company expanded its product line by adding two more items: PIPERAZINE ANHYDROUS and PIPERAZINE Solution, and as a result, it has grown to be one of the leading providers of PIPERAZINE to the pharmaceutical and Gas Sweetening Application sectors.

Business products

The company’s product range includes Piperazine Anhydrous, Piperazine 68% (PIP-68), ethylene Diamine (EDA), Diethylene Triamine (DETA), Amino Ethyl Piperazine (AEP), Polyamines Mix (PA-MIX), Mono Ethanolamine, Triethylene Diamine (100%), Triethylene Diamine (33% in DPG), Triethylene Diamine (33% in PG), Triethylene Diamine (33% in MEG), Triethylene Tetramine (TETA), Tetraethylene Pentamine (TEPA).

Ethylenediamine

As per the company’s product Boucher Diamines & Chemicals Ltd is the only company to manufacture ethylenediamines in India.

Ethylenediamine is an organic compound that is used as a building block for the production of many other chemical products. Ethylenediamine serves as a basic ingredient in the creation of numerous other chemical goods. It is a basic substance used to make quinolone medications like Norfloxacin and Ciprofloxacin. Additionally used in the production of sedatives, antihistamines, antifilarides, tranquillizers, and analgesics. used for specialty chemicals and polymeric goods like wetting agents, polyamides, rubber additives, rust inhibitors, photographic chemicals, hardeners for epoxy resins, and gas sweetening.

Piperazine Anhydrous

It is a basic substance used to make quinolone medications like Norfloxacin and Ciprofloxacin. Additionally used in the production of sedatives, antihistamines, antifilarides, tranquillizers, and analgesics. used for specialty chemicals and polymeric goods like wetting agents, polyamides, rubber additives, rust inhibitors, photographic chemicals, hardeners for epoxy resins, and gas sweetening.

Diethylenetriamine

It is used as a basic ingredient for Wet Strength Resin, Polyamide Resins, Chelating Agents, Corrosion Inhibitors, Drainage Aids, Cloth Softeners, Lube Oil, and Gasoline Additives, as well as Asphalt Additives.

Aminoethylpiperazine

It is used as a basic substance for urethane chemicals, polyamide resins, textile additives, epoxy curing agents, mineral processing aids, and asphalt additives.

Other chemicals manufactured

• Triethylenetetramine
• Tetraethylenepentamine
• Polyethylene Polyamine-Mix
• Polyethylene Polyamine-Mix-01
• Monoethanol amine
• Triethylenediamine

New Products Under Development

PIPERAZINE DERIVATIVES

• N-Methyl Piperazine (NMP)
• N,N’–Dimethyl Piperazine (DMP)
• N–ethyl Piperazine (NEP)
• N,N’–Diethyl Piperazine 1–Amino–4–Methyl Piperazine (AMP)
• N–Formyl Piperazine N–Acetyl Piperazine
• N–Benzyl Piperazine N–Phenyl
• Piperazine N–(4–Chloro Phenyl)
• Piperazine N–(2–Chloro Phenyl) Piperazine

OTHER PRODUCTS

• 1,2–Diaminopropane Dipropylene
• Triamine
• Diacetyl Ethylenediamine (DAED)
• Tetracetyl Ethylenediamine (TAED)
• Tetra methyl Ethylenediamine (TMEDA)
• Amine Mixture Used in CO2 Capture (gas sweetening & acid gas removal)

Financials

For the year ended March 22

• Net Sales stood at Rs 66 crore in March 2022 almost flat as compared to Rs. 63 crore in March 2021.
• Yearly Net Profit stood at Rs. 17 crore in March 2022 down 15% from Rs. 21 crore in March 2021.
• EBITDA stood at Rs. 22 crore in March 2022 down 12% from Rs. 25 crore in March 2021.
• Company is completely debt free.
• Cash and equivalents stood at 40 crs highest ever as on March 22.
• Operating profit margin stool at 33%.

For Q3FY23

• Net Sales stood at Rs 24.87 crore in December 2022 up 47.47% from Rs. 16.86 crore in December 2021.
• Quarterly Net Profit stood at Rs. 8.93 crore in December 2022 up 260.54% from Rs. 2.48 crore in December 2021.
• EBITDA stood at Rs. 12.65 crore in December 2022 up 228.57% from Rs. 3.85 crore in December 2021.
• EPS for quarter ended December 2023 was 9.18 Rs.
• Company had reported solid operating margin of 48%.

Management’s comments

No information was available from the company’s side about its future outlook, plans or any other comments from the management. We have written the same to the company’s management. Will update you in case we receive anything.

Conclusion

According to its management, Diamines & Chemicals, a company with over 47 years of experience and zero debt, is the only producer of ethyeneamines in the country and has been doing so for more than 20 years. The company is also involved in many other speciality chemicals and is expanding its position in the field of speciality chemicals by trying new products for release in the near future. In addition to being debt-free lately, the business has a cash balance of more than 40 crores, and fixed assets increased significantly in FY 22 compared to FY 21. It is very challenging to predict the company’s future chances because it works in a specialised market and there is very little public information about it. Diamines & Chemicals, however, appears to be a long-term investment worth bearing in mind in light of the company’s present financial situation and steady development over the previous five years, during which time it witnessed a 28% compounded profit growth.