According to the management of Ami Organics, the priority for the acquired business of Gujarat Organics is to stabilise revenue and focus on reducing inefficiencies
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
After an impressive listing on bourses a few weeks back, Ami Organics (CMP: Rs 1,012, Market Cap: Rs 3,677 crore) has recently corrected by 30 percent from its highs. This is broadly in line with the collapse in select mid-cap names, which are facing headwinds such as commodity inflation, logistic challenges and a reversal in fund flows. This leads us to evaluate the investment case for Ami Organics, which is one of the few listed plays focused on pharma intermediates…
