Buy Ami Organics, target price Rs 1,965: JM Financial

JM Financial has buy call on Ami Organics with a target price of Rs 1,965. The current market price of Ami Organics is Rs 1,602.

Ami Organics incorporated in the year 2007, is a Small Cap company (having a market cap of Rs 6,533.44 Crore) operating in Chemicals sector.

Ami Organics key Products/Revenue Segments include Organic Chemicals and Other Operating Revenue for the year ending 31-Mar-2024.


Financials

For the quarter ended 30-06-2024, the company has reported a Consolidated Total Income of Rs 177.71 Crore, down -21.47% from last quarter Total Income of Rs 226.30 Crore and up 23.88 % from last year same quarter Total Income of Rs 143.45 Crore. Company has reported net profit after tax of Rs 14.69 Crore in latest quarter.

Valuations

JM Financial initiate coverage on Ami Organics with a BUY rating and a Mar’26 TP of INR 1,965 (based on 30x Mar’27E EPS). Ami is currently trading at ~32x/24x Mar’26E/Mar’27E EPS. At current valuations and considering the long growth runway for the business, the stock can offer ~19% return CAGR over the next 2-3 years even if one-year forward PE multiple compresses to ~30x vs. ~40x currently.

Promoter/FII Holdings

Promoters held 35.98% stake in the company as of 30-Jun-2024, while FIIs owned 12.93%, DIIs 14.8%.