Buy Ami Organics, target price Rs 1160: HDFC Securities

HDFC Securities has buy call on Ami Organics with a target price of Rs 1160. The current market price of Ami Organics is Rs 968.7.

Ami Organics, incorporated in the year 2007, is a Small Cap company (having a market cap of Rs 3526.20 Crore) operating in General sector.

Ami Organics key Products/Revenue Segments include Organic Chemicals and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 147.84 Crore, up 12.32 % from last quarter Total Income of Rs 131.62 Crore and up 20.72 % from last year same quarter Total Income of Rs 122.47 Crore. Company has reported net profit after tax of Rs 19.04 Crore in latest quarter.

The company’s top management includes Mr.Nareshkumar Ramjibhai Patel, Mr.Chetankumar Chhaganlal Vaghasia, Mr.Virendra Nath Mishra, Mr.Ram Mohan Rao Locande, Mrs.Richa Manoj Goyal, Mr.Hetal Madhukant Gandhi, Mr.Girikrishna Suryakant Maniar, Dr.Anita Bandyopadhyay. Company has Maheshwari & Co., as its auditors. As on 30-09-2022, the company has a total of 4 Crore shares outstanding.

Investment Rationale
The company’s near-term growth shall be fueled by its consistent investments in R&D, expansion of its speciality chemicals’ portfolio and rising utilisation of the acquired Gujarat Organics facility. The company’s foray into electrolyte additive manufacturing could further act as a trigger for its sustainable growth.

Promoter/FII Holdings
Promoters held 39.41 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.23 per cent, DIIs 3.61 per cent.