Buy Ami Organics; target of Rs 1354: Anand Rathi

Anand Rathi's research report on Ami Organics

Ami Organics Limited (AMIORG) is an R&D driven manufacturer of speciality chemicals focused on two business segments, mainly pharmaceuticals advance intermediates also known as pharma intermediates and specialty chemicals. Under pharma intermediates, it manufactures Active Pharmaceuticals Ingredients (APIs) and New Chemical Entity (NCEs). It has developed and commercialized over 450 pharma intermediates for APIs across all 17 therapeutic areas and for New Chemical Entities. Under its Speciality Chemical segment, the company manufactures key starting raw materials for Agrochemicals and Fine Chemicals companies. It has recently acquired two facilities from Gujarat Organics Ltd. (GOL), which help to foray into preservatives and other specialty chemicals used in manufacturing of cosmetics, dye, polymers and agrochemicals. Ami Organics is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban which find application in certain high-growth therapeutic areas, commanding significant market share both in India and globally.

Outlook

With the presence in high growing and niche markets Ami Organics Limited is set to continue to post better growth in mid term. We initiate our coverage on the stock with a BUY rating and a target price of ₹1,354 Per Share