Ami is a leading manufacturer of intermediates for APIs/NCEs and an emerging specialty chemicals player. Early targeting of products, stated intent to not compete with customers and diverse chemistry skills have driven long-term customer relationships and market share dominance in many products, highlighted brokerage Ambit in a note.
The brokerage has initiated coverage with a buy rating on the specialty chemical stock with a target price of ₹target price of ₹1,500 per share with a time horizon of twenty four months.
While very different in scale, approach to business mirrors that of Divi’s – ability to replicate cost/market-share leadership in an increasing number of products is key to achieving similar valuation trajectory over time, Ambit added.
“Ami’s strengths are diverse and long-standing tie-ups and R&D strength. Long regulatory gestation to switch, scale driven cost edge (30-90% share in many products) and diverse chemistry skills lend stability. Large product suite and investment in people & capacity position it well for high multi-year growth,” the note stated.
Ami Organics is one of the leading R&D driven manufacturers of specialty chemicals with varied end usage, focused towards the development and manufacturing of pharma intermediates for regulated and generic APIs (active pharmaceutical ingredients) and NCE (new chemical entity) and key starting material for agrochemicals and fine chemicals.
“Ami is well-positioned to capitalize given investment in capacity and people along with expanded specialty chemicals playbook post recent GOL acquisition,” Ambit added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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