Shares of this smallcap company jumped around 4 percent in Wednesday’s trading session after receiving a patent for its invention. The shares have delivered a decent return of around 15 percent to its shareholders in one year.
With a market capitalization of Rs. 4,431 crores, the shares of Ami Organics Ltd started Wednesday’s trading session on a higher note at Rs. 1,666.95 compared to its previous close of Rs. 1,160.20. During the trading session, the shares hit a high of Rs. 1,219, gaining around 4 percent and are currently trading at Rs. 1,204 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Patent Office of the Government of India had a Process Patent for its invention titled “A Process for the Preparation of Lumateperone Tosylate Intermediate.” This patent is valid for a term of 20 years in accordance with the provisions of the Patents Act, 1970.
Furthermore, the company mentioned that the patented process was developed internally at its R&D Centre and this marks Ami Organics’s 10th patent granted for its innovative processes and technology.
Coming onto the company’s financial statements, the revenue decreased by 3 percent from Rs. 172 crores during the September quarter to Rs. 166 crores in the December quarter. On a contrasting note, the net profits showcased a transition from a net loss of Rs. 17 crores to net profits of Rs. 18 crores during the same timeframe.
The company derives its revenue from various sources, with the majority originating from advanced intermediates, accounting for 78 percent of the total revenue. The remaining 22 percent of the revenue is generated from speciality chemicals.
The company supplies products to 25 countries and has long-standing relationships with numerous domestic and global pharmaceutical companies. Specifically, it caters extensively to the large geographies of Italy, Finland, France and China.
According to the BSE data, Ace Investor Mr Ashish Kacholia, entering the stock in September 2021, currently holds approximately 7.54 lakh equity shares equivalent to a 2.05 percent stake in this company. The current holding value of his investment amounts to Rs. 90.7 crores.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 14.92 percent and a return on capital employed (RoCE) of 20.43 percent for the period spanning FY22-23. In addition, the net profit for FY22-23 was 13.51 percent.
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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