This Ashish Kacholia portfolio stock has zoomed 32% in 3 days: Details here

Shares of Ami Organics hit a new high of Rs 1,987.40, surging 9% in intra-day trade on Wednesday, and zooming 96% from its June month low of Rs 1,014 on the BSE

Ami Organics shares hit a new high of Rs 1,987.40, surging 9 per cent on the BSE in Wednesday’s intra-day trade, and extending its past two day's rally after it reported a solid set of numbers for the second quarter ended September 2024 (Q2FY25).  The company also raised its revenue growth guidance for FY25 from 25 per cent to 30 per cent. The stock has bounced back 96 per cent from its June month low of Rs 1,014 on the BSE.

 

Investor Ashish Kacholia held 754,974 equity shares, representing a 1.84 per cent stake, in Ami Organics at the end of September 2024 quarter, shareholding pattern data from the exchanges showed.

 

In three days, the stock of the pharmaceutical company has soared 32 per cent after it registered a 155 per cent year-on-year (YoY) jump in consolidated net profit at Rs 37.6 crore, compared to a profit of Rs 14.7 crore, a year ago. Revenue for the quarter grew 43 per cent YoY to Rs 246.73 crore as compared to Rs 172.36 crore in Q2FY24.

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) nearly doubled to Rs 48.9 crore, from Rs 24.8 crore in the previous year quarter. Meanwhile, Ebitda margin improved 540 bps YoY to 19.8 per cent.

 

The management said the company’s key products maintained growth momentum, and an earlier-than-anticipated ramp-up in contract development and manufacturing organisation (CDMO) business provided an additional boost to results.

 

The management said the company is experiencing resurgence in demand for its core molecules, bolstered by ramp up in CDMO contract and strong volume growth within its specialty chemicals division. Based on the current order pipeline, the management has raised revenue growth guidance for FY25 from 25 per cent to 30 per cent.

 

Ami Organics is a leading global manufacturer of advance pharmaceutical intermediates and speciality chemicals. The pharma intermediates find thier application in certain high-growth therapeutic areas including anti-depressant, anti-cancer, anti-retroviral, anti-Parkinson, and seizure disorder drugs.  Ami Organics is the market leader for various key intermediates across the globe and the first company in India outside of China to spearhead the pioneering development of electrolyte additives on a global scale.

 

Analysts at JM Financial Institutional Securities maintain a 'Buy' rating on Ami Organics with a revised Mar 2026 target price of Rs 2,055 per share (based on 30x Mar’27E EPS). The brokerage firm believes signing of another CDMO contract would be a further re-rating event for the company.

 

Earlier-than-expected ramp-up of CDMO sales was the key positive surprise from the strong earnings print. Ami said the rampup of the CDMO facility began in the latter half of Q2FY25 and full utilisation would be seen gradually. It added that apart from Fermion, one more CDMO contract is expected to be finalised by FY25-end and revenue from it is expected from FY26, the brokerage firm said in the company's results update.

 

“We highlight that Nubeqa sales for Bayer has already reached EUR 380 million quarterly run-rate by end-Q2CY24. Hence, demand environment for the Fermion CDMO contract would remain buoyant in the coming quarters for Ami. In our view, this, along with a possible CDMO contract, may have led the company to revise its FY25 sales guidance upwards to 30 per cent (vs. 25 per cent),” the brokerage firm said.