Shares of this small-cap company jumped around 1 percent after the company received an order from a Finland-based company to manufacture advanced pharmaceutical intermediates products.
With a market capitalization of Rs. 4,215 crores, the shares of Ami Organics Ltd started Friday’s trading session positively at Rs. 1,170 compared to its previous price of Rs. 1,138. The shares hit a high of Rs.1,175, gaining around 1 percent and are currently trading at Rs. 1,141.70 apiece.
Such a positive movement was observed after the company in an exchange filing mentioned that they had signed another definitive agreement with Fermion, a fully owned subsidiary of Orion Corporation, Finland. As part of the agreement, Ami Organics will manufacture a couple of additional advanced pharmaceutical intermediates for Fermion.
Earlier, the company had already signed two agreements with Fermion in November 2022 and September 2023 for the supply of two advanced pharmaceutical intermediates.
The two additional advanced pharmaceutical intermediates signed today will be used in captive consumption for the manufacture of earlier advanced pharmaceutical intermediates signed with Fermion. In addition, they mentioned that the products are to be manufactured at the Ankleshwar Facility of Ami Organics Ltd, and are expected to start contributing meaningfully to the revenue from FY25.
Furthermore, the company in a separate filing announced that they have inaugurated its manufacturing plant in Ankleshwar, Gujarat. This development is a strategic part of bolstering its position in the advanced pharmaceutical intermediates segment. The new manufacturing plant, extending over 10,375 square meters, is undergoing a significant brownfield expansion to support the company’s burgeoning pharmaceutical intermediates business.
Coming onto the company’s financial statement, the revenue increased by 12 percent from Rs. 154 crores in the June quarter to Rs. 172 crores during the September quarter. On a contrasting note, the net profit showed a transition from a net profit of Rs. 22 crores to a net loss of Rs. 17 crores during the same timeframe.
The company gets revenue from multiple sources, primarily from advanced intermediates which contribute 78 percent of the revenue and the remaining 22 percent of the revenue comes from speciality chemicals.
Headquartered in Gujarat, Ami Organics Ltd was incorporated in 2007. The company is one of the leading research and development-driven manufacturers of speciality chemicals. They manufacture different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) for New Chemical Entities and materials for agrochemicals and fine chemicals.
Written By Vaibhav Patil
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