Ami Organics - Pharma Intermediates & Specialty Chemicals

Stock Opportunities Untested - but worth a good look
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Q3 FY24-

The company revised its revenue growth guidance for FY24 from 18-20% to 15-18% due to eroding topline, expecting to be in the same space for the upcoming year.
Revenue growth for FY25 is expected to be between 17% to 22%, with potential for further increase, driven by anticipated volume pickup in Fermion and contribution from new electrolyte projects.

Margins for Specialty Chemicals moderated to 14-16% due to price erosion and industry pressure, with the aim to improve margins to 18-20% in the next quarter and a long-term target of 23%.

The price of raw material and final product has decreased by 20%, impacting the market size and application geography.

The new facility’s revenue is estimated to be approximately 3 times that of the Ankleshwar Unit.

Baba Fine Chemicals, acquired for the semiconductor industry, currently contributes around Rs. 40-45 crores to the topline and has potential for incremental growth.

The company has already supplied validation quantity of a UV absorber product and plans to ramp up production from Q1 FY25.

The current capacity utilization of the Specialty Chemical plant is expected to increase from 45% to 55% and reach full utilization by FY26

The company expects the EBITDA margin to be between 23% and 26% in 3-4 years.

The company plans to focus solely on the electrolyte additive business and not diversify into other areas. Sales from electrolyte for Fermion have commenced, but it is still premature for the electrolyte CDM business. The Rs. 300 crores CAPEX for electrolyte will take some time, whereas the Ankleshwar facility’s upgradation is ongoing and will be finished soon. The company targets achieving Rs. 1,000 crore revenue by FY2025-26 midway.
Capex outlay for 9MFY24 was Rs. 212 crores, funded through a mix of internal accruals and debt, with a total capex outlay for Ankleshwar unit revised from Rs. 190 crores to Rs. 310 crores.

The current capacity is 500 tons each for VC and FVC products, with plans to install an additional 2,000 tons each.

A Rs. 300 crore toll manufacturing opportunity is expected to be finalized in FY25, with the plant taking approximately 12 months to come up.

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A short video covering both Ami Organics and Fineotex Chemicals

Just sharing.

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Electrolyte business will definately flourish this year
Fermion COntract also adds up to revenue in Q1 onwards

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Ami Organics – the intermediates juggernaut? – Uncommon Opportunities (home.blog)

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Ami organics Q4 export

Export value rs 272 crore up by 134.7% YoY and 52.1% QoQ
Export volume up by 20.1% yoy and 3.9 QoQ%

Data from source, not validated.

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Could you please link the source for this?

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Raising QIP…not exceeding ₹ 5,000 million :thinking:

Raising QIP.pdf (900.8 KB)

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The company has not even completed IPO base.

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image2602×1760 218 KB

And now they are diluting 500cr QIP on the market cap of 4500 cr!!

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Ami Organics Limited, has been accredited with Gold Medal by EcoVadis. The EcoVadis Gold Medal is the Sustainability scorecard which put the Company amongst top 5% of the companies assessed by EcoVadis globally.
Company has been rated by EcoVadis across the four themes of Environment, Labour & Human Rights, Ethics and Sustainable Procurement.

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Hi, they have now a basket for all the intermediates. In my view there are 5 (2 are bases conjoined to form one important intermediate)

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I think what really happened in Q2:
a) We saw a global correction in base chemicals and KSM’s - Ami had to eventually sell at a price where competition killed pricing due to having access to cheaper RM whereas Ami had stored RM’s for 3 months in advance (high cost RM)
b) Contribution of one of their key anti-coagulants is almost negligible to zero in FY24 (Apixaban)

Some updates on Apixaban
-Apixaban’s patent was rendered invalid by UK Court (they mentioned- gave entry to Teva and Sandoz who are the generic filers (Ami’s clients).

The expectation was that rest of Europe would follow. However, in July 2023 the Apixaban patent was upheld in Netherlands and France, to an extent where generic versions of Apixaban were removed.

-However, the Irish government has sided with the decision of the UK government and render the patent invalid.

-Apixaban’s global patent expiry is at the end of CY26 meaning generic filers get access to the product in 2027.

-Though Apixaban’s contribution in FY24 was negligible to zero - it could make a comeback for Ami in FY25 (as UK and Ireland volume may be re-stocked)

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You have to adjust this data to account for some billing differences

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