Ami Organics Ltd share Price Today

Chemical stocks has been in limelight since beginning of April after being out of favour for several months as risk-reward turned favourable. Within the small cap Chemical stocks we remain constructive of Ami Organics as it has generated a breakout above the last 16 month range (₹1110-825) offering fresh entry opportunity

The stock post its quarterly numbers has also generated a breakout above the bullish Flag formation with strong volume of more than six times the 50 days average volume of 0.78 lakhs share per day highlighting larger participation at the breakout area and continuation of the up move

Structurally, it has witnessed a faster retracement of the last falling segment as 28 weeks decline (₹1154-861) was completely retraced in just eight weeks. A faster retracement signal a robust price structure

We expect the stock to head towards ₹ 1290 levels in coming months being the 80% retracement of entire breather (₹ 1418-765)

Pharmaceuticals company Ami Organics announced Q4FY24 & FY24 results:

• Revenue from operations for Q4FY24 grew by 20.7% YoY and 35.2% QoQ to Rs 2,250 million
• The gross margin for the quarter was at 40.0%. Gross margins were impacted due to change in product mix.
• EBITDA for the quarter came at Rs 432 million up 5.9% YoY compared to Rs 408 million in Q4FY23 and up 62.8% QoQ compared to Rs 265 million in Q3FY24.
• EBITDA margin for the quarter was at 19.2% as compared to 21.9% in Q4FY23 and 15.9% in Q3FY24. EBITDA margins contracted by 269bps YoY and grew by 326 bps sequentially.
• Adjusted PAT for the quarter was Rs 260 million. Adjusted PAT margin for the quarter was 11.6%.

Commenting on results, Naresh Patel, Executive Chairman & Managing Director, Ami Organics, said: “I am pleased to share that we have been successful in navigating through the tough industry scenario to deliver an all-time high quarterly revenue from operations of Rs 225 crore. This represents a growth of 21% YoY and an exceptional 35% sequential growth. Our advanced pharmaceuticals business, grew strongly by 18% YoY and 47% QoQ while our specialty chemicals business grew robustly by 36% YoY during the quarter.

I am delighted to share that we have achieved the 'Gold Medal' accreditation from EcoVadis. Although we are in chemicals manufacturing industry, we remain steadfast on our sustainability goals propelled by an intensified focus on green chemistry and green initiatives. This commitment underscores our proactive approach to environmental responsibility and sustainability.

I am also thrilled to inform you that recently we have received grant of 3 process patents from The Patent Office, Government of India. Two of these three products are niche and complex in nature.

Overall, I believe that we have navigated industry challenges adeptly in FY24 and as we progress ahead with improved overall prospects for the industry, we firmly believe we will sustain our growth trajectory, targeting a revenue growth in range of 20-25% for the fiscal year FY25.”

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