Ami is a leading manufacturer of API/NCE intermediates and an emerging player in specialty chemicals. Early product targeting, stated intent not to compete with customers, and diverse chemistry skills have fostered long-term customer relationships and market share dominance in many products, brokerage Ambit noted in a note. .
The brokerage initiated a hedge with a buy rating on the specialty chemicals stock with a target price of ₹target price of ₹1,500 per share with a time horizon of twenty-four months.
Although vastly different in scale, the business approach mirrors that of Divi – the ability to replicate cost/market share leadership in a growing number of products is key to achieving a similar valuation trajectory over time. time, Ambit added.
“Ami’s strengths are diverse and long-standing ties and R&D strength. Long regulatory gestation to change, scale-related cost reduction (30-90% share in many products) and diverse chemistry skills provide stability Extensive product line and investment in people and capability positions it well for high multi-year growth,” the note reads.
Ami Organics is a leading R&D-driven specialty chemicals manufacturer with a diverse end use, focused on the development and manufacturing of pharmaceutical intermediates for regulated and generic APIs (active pharmaceutical ingredients) and NCE (new chemical entity) and the key starting material for agrochemicals and fine chemicals.
“Ami is well positioned to capitalize given the investments in capacity and people, as well as the expansion of the specialty chemicals playbook following the recent acquisition of GOL,” Ambit added.
The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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