ADVERTISEMENT

Alkyl Amines - Acetonitrile Prices Soften; Demand Expected To Remain Strong: Motilal Oswal

Acetonitrile demand is expected to stay strong, led by a recovery in demand from pharma sector to produce antibiotics, insulin.

<div class="paragraphs"><p>Alkyl Amines Chemicals Ltd. (Source: Company website)</p></div>
Alkyl Amines Chemicals Ltd. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

Acetonitrile demand is expected to stay strong, led by a recovery in demand from the pharma sector. ACN is used as a solvent in the pharma industry to produce antibiotics and insulin, apart from usage in the textile and plastic industry.

Much of the acetonitrile produced globally is as a by-product of acrylonitrile. This makes the production of ACN dependent on the demand of acrylonitrile in the market. Only China and India produce ACN through the ammonolysis of acetic acid.

Alkyl Amines Chemicals Ltd. is the largest ACN player in India with a capacity of ~30 thousand tonnes per annum.

At present, the capacity of its closest competitor is one-third that of Alkyl Amines. Its competitor is expanding capacity, with a new upgraded technology with cost advantages.

We expect return on equity to improve to 29% for FY24 from 25% in FY22.

Click on the attachment to read the full report:

Motilal Oswal Alkyl Amines Company Update.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.