SANJAY AGARWAL

Very few people are paying attention to what could be unfolding in Balaji Amines and Mitsu Chem Plast right now 👀 Both companies went through a brutal slowdown over the last 2 years because of global destocking, weak exports and margin pressure. But the latest numbers suggest the cycle may finally be turning. Balaji Amines just reported: Q4 revenue up 11.5% EBITDA up 58% PAT up almost 58% EBITDA margins expanded from 16.9% to 23.9% This is important because chemical companies have huge operating leverage. Once utilization improves, profits can explode much faster than revenues. Management is also commissioning multiple new projects including DME and Acetonitrile capacity in FY27 while aggressively scaling specialty chemicals through Balaji Specialty Chemicals. The really interesting part is the long term possibility. Current FY26 revenue is around ₹1450 crore. But several reports and management commentary now point toward a possible path to ₹3000 crore revenue over the next few years if specialty chemicals, pharma intermediates and downstream derivatives scale successfully. And if EBITDA margins sustain even in the 18% to 22% range, earnings can look dramatically different from current levels. Now look at Mitsu Chem Plast. This one is much smaller and much riskier but the optionality is huge. Latest Q4 PAT jumped 118% YoY while margins expanded sharply. Management is entering the IBC business, expanding healthcare furniture and targeting around 30% growth in FY27. Even more interesting, they are talking about a potential ₹1000 crore revenue ambition by FY28. That is massive considering the current scale of the company. The market still thinks this is just another packaging company. But if Mitsu successfully transitions toward medical applications, industrial bulk packaging and value added manufacturing, the entire earnings profile can rerate. Of course risks remain. Balaji still faces Chinese competition and chemical cyclicality. Mitsu still carries classic smallcap execution risk. But these are exactly the kind of companies that can quietly compound for years when the cycle turns and product mix starts improving. Feels like we may still be very early in this story.

Subhkam Ventures A fund not widely known.. Invested in Tips Music in Sep 22 and exited in June24. Tips moved from 150>>900 by Nov24. Bought Centum Electronics in fund raise in Mar25 at 1160, today stock at 3100. Current Holdings of Subhkam Ventures: Tips Music(Re-entered) Centum Electronics Karbonsteel Engineering Windsor Machines Elin Electronics