Ami Organics Q4 Results Review - Improved Performance Led By Volumes: IDBI Capital

IDBI Capital Report

Ami Organics Ltd. registered an improved sequential financial performance in Q4 FY24. While revenue grew by 35% QoQ, adjusted profit after tax grew by 50% QoQ. Gross margins stood at 40% as against a usual run rate of 43-44%. Ebitda margins stood at 19% registering a sharp improvement of 330 bps QoQ.

Lower gross margins were on account of price erosion and higher sale of low margin products namely specialty chemicals and domestic pharma intermediate sales.

The management has raised revenue growth guidance from 17-22% to 20-25% for FY25. We raise our FY25/FY26 PAT by 30%/3% to factor in the same.

We maintain our Hold rating with revised target price of Rs 1,200 (Previous target price: Rs 1,134) assigning a target multiple of 37 times on FY26 EPS.

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