In a regulatory filing on Wednesday, the company informed about a small incident that had taken place at its unit III demethylformamide (DMF) plant. The incident caused leakages/breakdown.

While rectifying the incident, the company said it is adding some debottlenecking activities to increase capacity which may take two to three weeks' time. During this period, the DMF plant will not be in operational.

Dimethylformamide (DMF) is a clear, colorless, hygroscopic liquid with a slight amine odor. DMF is widely used as a solvent, reagent and catalyst in the synthetic organic chemistry. It is also used as carrier for inks and dyes in various printing and fiber-dying applications

Balaji Amines makes methylamines, ethylamines, derivatives of specialty chemicals and pharma excipients. The company is one of the leading manufacturers of aliphatic amines in India. The company's consolidated net profit soared 208.39% to Rs 97.39 crore on a 101.59% increase in total revenue from operations to Rs 451.94 crore in Q1 FY22 over Q1 FY21.

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Balaji Amines announced that a small incident took place in its unit IIIdemethylformamide (DMF) plant due to which leakages/breakdown occurred. While rectifying this, the company is adding some debottlenecking activities to increase capacity which may taketwo to three weeks' time. During this period, the DMF plant will not be in operational.

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Shares of Balaji Amines zoomed 27.2% in six trading sessions from its previous closing low of Rs 4037.75 on 6 September 2021. The counter hit a record high of Rs 5,220 in intraday today. The stock has surged 590% from its 52-week low of Rs 744 recorded on 22 September 2020.

In last one month, the stock has moved 50% higher as compared to a 5.5% rise in Nifty SmallCap 50 index.

On the technical front, the stock's RSI (relative strength index) stood at 88.855. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 3472.23 and 3039.43 respectively. These levels will act as crucial support zones in near term.

Balaji Amines makes methylamines, ethylamines, derivatives of specialty chemicals and pharma excipients. The company is one of the leading manufacturers of aliphatic amines in India. The company's consolidated net profit soared 208.39% to Rs 97.39 crore on a 101.59% increase in total revenue from operations to Rs 451.94 crore in Q1 FY22 over Q1 FY21.

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The company intends to meet the growing demand by setting up the said expansion project.

The company's existing capacity of acetonitrile is 9000 tonnes per annum (TPA), with existing capacity utilization levels at 60%. The new plant will increase the company's capacity by 16,500 TPA.

The new capacity will cost company approximately Rs 70-80 crore and will be set up in 12 to 18 months. The project will be financed via internal accruals.

Balaji Amines makes methylamines, ethylamines, derivatives of specialty chemicals and pharma excipients. The company is one of the leading manufacturers of aliphatic amines in India.

The company's consolidated net profit soared 208.39% to Rs 97.39 crore on a 101.59% increase in total revenue from operations to Rs 451.94 crore in Q1 June 2021 over Q1 June 2020.

The scrip advanced 0.18% to currently trade at Rs 3412.70 on the BSE.

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