Accumulate Ami Organics: KR Choksey Highlights Revenue Growth
Wednesday, 30 October 2024, 02:09
KR Choksey's Insight on Ami Organics
Ami Organics’ revenue growth has surpassed expectations, largely fueled by advancements in Advanced Intermediates. This impressive performance is reflected in a higher EBITDA and Adjusted PAT, primarily due to lower employee expenses.
Revised Earnings Projections
- EPS for FY26E increased: From 37.1 to INR 46.4.
- High-margin product contributions: Expected to drive revenue across all segments.
- New PE multiple: Increased to 43.0x (previously 37.0x) reflecting confidence in Ami Organics' strong CDMO pipeline.
Future Outlook
The target price for Ami Organics is set at INR 1994/share, an increase from INR 1374/share, underscoring the firm's ACCUMULATE rating amidst a promising outlook with ongoing projects in Europe, the USA, and Japan.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.