KR Choksey's research report on Ami Organics
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. Despite the typical seasonal weakness in the first quarter, management remains confident in achieving its revenue growth targets for FY25E, supported by a strong order book. We decrease our FY25E EPS by 5.1% due to weak operating performance but maintain FY26E EPS respectively. Currently, the stock is trading at PE multiples of 48.2x/34.9x based on FY25E/FY26E EPS, respectively. We assign a PE multiple of 37.0x (previously: 35.0x) on FY26E EPS of INR 37.1 (maintained) to arrive at a target price of INR 1,374 (previously: INR 1,294) as the Company is well-positioned to see improved performance in the upcoming quarters.
Outlook
We assign a PE multiple of 37.0x (previously: 35.0x) on FY26E EPS of INR 37.1 (maintained) to arrive at a target price of INR 1,374 (previously: INR 1,294) as the Company is well-positioned to see improved performance in the upcoming quarters. Given a 6.1% upside, we maintain our rating of “ACCUMULATE” on the stock.
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