One of the Ashish Kacholia stocks engaged in manufacturing specialty chemicals and pharmaceutical intermediates. The stock has jumped 2.44 percent after approval of Rs. 177 crore capex for the electrolytes project.
Stock Price Movement:
With a market capitalization of Rs. 95,804.88 crores, the shares of Ami Organics Limited reached an intraday high of Rs. 2,270 per equity share, rising nearly around 2.44 percent from its previous day’s close price of Rs. 2,215.90. Since then, the stock has retreated and is currently trading at Rs. 9,024.82 per equity share.
What Happened:
AMI Organics Limited has approved a capital expenditure of up to Rs. 177 crores for its brownfield electrolytes additives project at the Jhagadia facility owing to the additional expenditure required for building dedicated ancillary infrastructures.
The investment will enhance capacity to 4,000 MT/year by H1 FY 2025-26, involving transforming manual operations to fully automated operations, building dedicated utilities, and a storage and packaging facility. Financing will be through share issue proceeds and internal accruals.
Margin Guidance and Future Outlook:
AMI Organics Limited targets improving EBITDA margins beyond 25% within three years, building on current pharmaceutical intermediate margins at 21.44% and specialty chemicals at 11.36%.
The company remains optimistic about sustaining a 25% CAGR, driven by a robust pipeline, contract expansions, and strategic growth initiatives across its operations.
CAPEX and Expansion Plans:
AMI Organics allocated Rs. 80 crore for H1 FY25 CAPEX, emphasizing the Ankleshwar site and solar projects. The Ankleshwar project, delayed by rains, is set for completion this quarter.
Solar project completion by Q3 FY25 promises EBITDA gains, while the electrolyte additive project progresses toward H1 2025 completion, driving growth.
Segment Performance
AMI Organics Limited’s pharmaceutical intermediates segment grew 53% YoY in Q2 FY25, led by key molecules and CDMO expansion in anti-cancer, anti-depressant, and anticoagulants.
Specialty chemicals saw 7.6% growth, exceeding 25% excluding Baba Fine Chem’s underperformance, with demand normalization expected by FY26.
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Shareholding pattern
In September 2024, AMI Organics Limited had a majority stake held by the promoters at 35.97 percent, foreign institutional investors at 13.87 percent, domestic institutional investors at 19.93 percent, and the public at 30.24 percent.
In the public shareholding, Ace investor Ashish Kacholia has a stake of 1.84 percent in AMI Organics Limited. He has a reduced stake of 0.01% as compared to June 2024.
Recent quarter results and ratios:
AMI Organics Limited’s revenue has increased from Rs. 172 crore in Q2 FY24 to Rs. 247 crore in Q2 FY25, which has grown by 43.60 percent. The net profit of AMI Organics Limited has converted net loss into net profit, from Rs. -17 crore in Q2 FY24 to Rs. 38 crore in Q2 FY25.
AMI Organics Limited’s revenue and net profit have grown at a CAGR of 24.57 percent and 16.33 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 16 percent and 9.37 percent, respectively. The debt-to-equity ratio of the company is to be 0.01x, which shows the company is almost debt-free. AMI Organics Limited’s EPS is to be Rs. 23.9.
Company Overview:
Ami Organics Limited is a prominent Indian manufacturer specializing in specialty chemicals and pharmaceutical intermediates. The company has established itself as a leader in research and development, focusing on the production of active pharmaceutical ingredients (APIs) and advanced pharmaceuticals.
The company caters to various sectors, including pharmaceuticals, agrochemicals, and fine chemicals, and has developed over 520 products for more than 500 customers across 50 countries.
Written By – Nikhil Naik
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