Ami Organics Limited is a manufacturer of specialty chemicals based in India. These specialty chemicals mainly focus on the manufacturing and development of pharma intermediates for generic & regulated Active Pharmaceutical Ingredients (APIs) as well as New Chemical Entities (NCEs).
The company has developed and commercialized more than 450 pharma intermediates across 17 therapeutic areas. Its specialty chemicals have various applications in the ‘fine chemicals’ and ‘agrochemicals’ industries.
With a market capitalization of Rs 4,280 crores, the stocks of the Ami Organics showed a flat movement today closing at Rs 1,175 today. In the last 5 trading sessions, the stock has gained nearly 11.5 percent ranging from Rs 1,049.65 to the current price levels.
Ace investor Mr. Ashish Kacholia has a stake in the company and according to the March quarter holdings, he holds a 2.13 percent stake equating to 7,76,474 shares. The holding value of his investment comes up to around Rs 91 crores.
The company, last week, announced its results for Q4 as well as the annual period for FY2022-23. In addition to the above, the Board recommended a Final dividend of Rs 3 (30 percent of its face value of Rs 10) for the same financial year.
Having a walkthrough of the quarterly financials, the company has been able to increase its operating revenues from Rs 152 crores in Q3 to Rs 186 crores in Q4 indicating a 22 percent increase. Moreover, the net profit numbers moved from Rs 22 crores to Rs 27 crores.
On a YoY basis as well, the operating revenues were on the rise from Rs 520 crores during FY21-22 to Rs 617 crores in FY22-23 showing an increase of around 19 percent. The net profits also rose from Rs 72 crores to Rs 83 crores keeping the timeframe the same.
One aspect to focus on for the company is the recent decline in profitability and margin ratios. The return on equity (ROE) went down from 39.63 percent during FY20-21 to 21.28 percent in FY21-22 and the return on capital employed (ROCE) went down from 33.01 percent to 24.05 percent.
Basic margin ratios such as the net profit margin showed a decline from 15.85 percent during FY20-21 to 13.83 percent in FY21-22. Recently, the company has turned debt-free adding to its strengths.
As per the data available for the March quarter, promoters of the company hold a 39.41 percent stake, and Foreign Institutional Investors hold a 6.36 percent stake in the company.
Written by Amit Madnani
