Diamines & Chemicals Ltd. (DIAMINESQ) AI Stock Analysis

Diamines & Chemicals Ltd.

(NSE:DIAMINESQ)

Select Model

Rating:44Neutral

Price Target:INR 233.00▲(3.86% Upside)

Action:reiterated

Date:08/23/26

The score is held down primarily by weak financial performance—FY2026 losses, a steep revenue decline, and sustained negative operating/free cash flow—despite a relatively supportive balance sheet. Technicals also remain soft with price below key moving averages and a negative MACD. Valuation offers limited offset since the negative P/E reflects current losses and the dividend yield is modest.

Positive Factors

Balance Sheet StrengthA substantial equity buffer and historically low leverage provide resilience through the downturn. This can help the company fund operations, absorb cyclical volatility, and pursue recovery without immediate dependence on heavy external borrowing.

Negative Factors

Revenue and Profit CollapseThe sharp revenue contraction and swing into substantial losses weaken earnings quality and visibility. Unless sales recover, fixed costs and lower operating leverage can continue suppressing margins, making a durable return to prior profitability uncertain.

Diamines & Chemicals Ltd. (DIAMINESQ) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.27B
Dividend Yield: 0.45%
Average Volume (3M): 1,249
Price to Earnings (P/E): -22.1
Beta (1Y): 0.75
Revenue Growth: -27.77%
EPS Growth: -61.55%
Country: India
Employees: 131
Sector: General
Sector Strength: 55
Industry: Chemicals

Diamines & Chemicals Ltd. Business Overview & Revenue Model

Company Description

Diamines and Chemicals Limited engages in the manufacture and marketing of organic chemical compounds in India. It operates in two segments, Specialty Chemicals, and Trading in Fruits and Vegetables. The company's products include piperazine anhydrou...

How the Company Makes Money

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Diamines & Chemicals Ltd. Financial Statement Overview

Summary

Overall fundamentals are pressured by a sharp FY2026 downturn: the income statement shows a swing to a large operating and net loss with revenue down ~32% YoY, and cash flow has been negative since FY2025 with worsening free cash flow in FY2026. The balance sheet is comparatively stronger (solid equity base, historically low leverage), but the meaningful rise in debt in FY2026 reduces flexibility if losses and cash burn continue.

Income Statement

32Negative

Balance Sheet

78Positive

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	411.11M	384.79M	714.72M	1.03B	1.10B	658.90M
Gross Profit	66.99M	23.65M	353.88M	444.26M	737.89M	375.84M
EBITDA	-83.49M	-138.05M	86.12M	251.30M	581.54M	237.95M
Net Income	-100.72M	-127.83M	27.31M	154.71M	419.04M	167.14M
Balance Sheet
Total Assets	0	1.74B	1.78B	1.63B	1.51B	1.11B
Cash, Cash Equivalents and Short-Term Investments	327.46M	320.69M	413.96M	362.95M	248.05M	390.90M
Total Debt	0	81.86M	251.00K	0	0	0
Total Liabilities	-1.57B	169.43M	168.31M	145.62M	165.51M	103.56M
Stockholders Equity	1.57B	1.57B	1.61B	1.48B	1.35B	1.00B
Cash Flow
Free Cash Flow	-199.95M	-294.49M	-90.37M	132.88M	-70.06M	123.03M
Operating Cash Flow	-71.15M	-80.98M	-50.22M	218.96M	162.85M	272.74M
Investing Cash Flow	-108.41M	-319.91M	146.54M	-188.33M	-86.63M	-214.91M
Financing Cash Flow	87.33M	183.35M	97.47M	-31.29M	-60.15M	-52.80M

Diamines & Chemicals Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DIAMINESQ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INDOAMIN	76Outperform	INR 8.68B	10.73	―	0.42%	13.23%	22.22%
IN:VALIANTORG	64Neutral	INR 11.77B	21.82	―	―	1.41%	946.41%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DEEPAKNTR	55Neutral	INR 207.25B	19.51	―	0.49%	25.13%	99.89%
IN:DMCC	53Neutral	INR 6.34B	15.85	―	0.98%	72.14%	34.49%
IN:KANORICHEM	45Neutral	INR 7.38B	12.76	―	―	-22.78%	―
IN:DIAMINESQ	44Neutral	INR 2.26B	-22.12	―	0.45%	-27.77%	-61.55%

* General Sector Average

Performance Comparison

IN:DIAMINESQ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DIAMINESQ	Diamines & Chemicals Ltd.	224.35	-45.25	-16.78%
IN:DEEPAKNTR	Deepak Nitrite Limited	1519.50	-208.95	-12.09%
IN:DMCC	DMCC Speciality Chemicals Limited	254.25	-45.46	-15.17%
IN:INDOAMIN	Indo Amines Limited	119.55	-12.92	-9.75%
IN:KANORICHEM	Kanoria Chemicals & Industries Ltd	168.90	91.12	117.15%
IN:VALIANTORG	Valiant Organics Limited	419.85	114.85	37.66%

Diamines & Chemicals Ltd. Corporate Events

Diamines & Chemicals Boosts Subsidiary Investment and Streamlines Operations

Aug 5, 2026

Diamines & Chemicals Ltd. has approved its standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, while also committing an additional Rs. 40 crore investment in its wholly owned subsidiary to fund long-term c...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 23, 2026

Diamines & Chemicals Ltd. AI Stock Analysis