BusinessAmi Organics may see good growth, Haitong Securities has given a target...

Ami Organics may see good growth, Haitong Securities has given a target of 29% upside

Haitong Securities has given an 'Outperform' rating for the stock initiating the curve. Also, a target of Rs 1,330 has been given for this, which is 29 percent more than the current market price.

There is good news for Ami Organics, which got listed last year. Haitong Securities India has given an ‘Outperform’ rating for the stock initiating the curve. Also, a target of Rs 1,330 has been given for this, which is 29 percent more than the closing price of last Friday.

On Monday, July 18, the stock is trading at 1,057.35 with a gain of about 3 per cent on the BSE.

The company has more than 450 products

Ami Organics is a leading Pharma Intermediate (PI) company, accounting for about 77 per cent of the total sales. The company has more than 450 products and its molecules like Trazodone, Dolutagravir and Apixaban have 50-90 per cent market share.

Pharma intermediate business expected to remain strong

Tarun Shetty of Haitong Securities said, “We expect pharma intermediate (PI) sales to remain strong as the products approach patent expiration. Thus, we expect the company’s PI sales growth to be 23 per cent CAGR during FY22-25.”

Supportfrom specialty chemicals

The company has recently forayed into the specialty chemicals segment through acquisitions and has contributed about 20 per cent of its total sales. It has many products with usage in multiple segments including Dye, Agro Chemical and Petro Chemical. He said sales of specialty chemicals could grow by 21 per cent during FY22-25.

During FY22, the company’s EBITDA margin stood at 20.2 per cent, down 331 basis points year-on-year. The main reason for the decline was the acquisition of a specialty chemical company and raw material inflation.

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