Ami Organics: What should investors do, post recent correction?
According to the management of Ami Organics, the priority for the acquired business of Gujarat Organics is to stabilise revenue and focus on reducing inefficiencies
October 26, 2021 / 05:43 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
After an impressive listing on bourses a few weeks back, Ami Organics (CMP: Rs 1,012, Market Cap: Rs 3,677 crore) has recently corrected by 30 percent from its highs. This is broadly in line with the collapse in select mid-cap names, which are facing headwinds such as commodity inflation, logistic challenges and a reversal in fund flows.
This leads us to evaluate the investment case for Ami Organics, which is one of the few listed plays focused on pharma intermediates...