Ami Organics Ltd. share price target

Ami Organics’ revenue beat our estimates significantly due to strong growth in Advanced Intermediates segment. EBITDA and Adj. PAT was well above our estimates due to better-than-expected gross profit and operating leverage.

Ami Organics’ revenue beat our estimates significantly due to strong growth in Advanced Intermediates. This is reflected in EBITDA and Adj. PAT performance, which beat our estimates primarily due to lower-than-expected employee expenses.

Ami Organics’ revenue missed our estimates due to a decline in price realization. EBITDA missed our estimates due to an increase in raw material costs and employee expenses.

Ami Organics’ revenue beat our estimate by 2.3% due to strong volume growths across both Advanced Intermediates and Specialty chemicals segments. The EBITDA beat our estimates by a strong 32.5% due to much lower operating expenses.

For Q3FY24, Ami Organics revenue increased 9.2% YoY (-3.4% QoQ) to INR 1,664 Mn. For 9MFY24, the revenue increased by 14.4% YoY to INR 4,925 Mn.

In Q2FY24, the Specialty chemicals segment witnessed revenue growth of 71.4% YoY to INR 378 Mn. The Advance Intermediates (API) segment reported an increase of 7.7% YoY to INR 1,346 Mn. The advanced intermediates segment continued to see pricing pressure that impacted sales growth in Q2FY24.

In Q4FY23, the Active pharma intermediates segment revenue stood at INR 1600 mn as against INR 1190 mn in Q4FY22, registering a growth of 34% on a YoY basis. In the API segment, AOL added 40 new customers in FY23. The board approved the CAPEX plan of INR 1900 mn at Ankleshwar, to support future business growth in the API segment.

In Q3FY23, Ami Organics Ltd reported revenue of INR 1,524 mn (+7.9% YoY / +3.7% QoQ). During the quarter, the revenue grew at a slower pace, primarily on account of deferred shipments of certain products. The pharmaceutical intermediates business continued to deliver consistent performance, increasing by 13%/2% YoY/QoQ to INR 1,271 mn, whereas the revenue growth of specialty chemicals business was muted at a -13% YoY/+15 QoQ to reach INR 253 mn.

During Q2FY23, Ami Organics Ltd reported Revenue of INR 1,470 Mn (+20.20% YoY / +12.21% QoQ). Such performance was driven by a robust increase in the API business which grew by 25% YoY.

During Q1FY23, Ami Organics Ltd reported Revenue of INR 1,310 Mn (+15.87% YoY / -8.71% QoQ). The export market and more specifically innovative businesses, were responsible for such growth.

AMIORG: Emerging pharma intermediate play; riding on Chinese import substitution. Technology & Internet: Significant jump in FY22 growth guidance

Company benefits from the best of two domains in chemical industry: Pharma intermediates and specialty chemicals

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IPO NOTE

10 each, (Comprising of fresh issue of 3,278,689 Equity Shares* (Rs. 200 cr.) and Offer for Sale of 6,059,600 Equity Shares (Rs. 369.6 cr.*) by Selling Shareholder)....