“We believe Ami is on the cusp of getting a higher share of CDMO sales post the successful execution of the Nubeqa contract. Moreover, manufacturing of electrolytes would take care of growth beyond FY27E,” said JM Financial in its report.
Ami, with a portfolio of 570+ products, caters to 500+ customers across 45 countries. Its key customers include Laurus Labs, Cipla, Fermion, etc. The company has developed 10 electrolyte additives and it has already started commercial production of two of these (VC and FEC).
The company’s business can be categorised into two broad categories: Pharma Intermediates and specialty chemicals. The company recently also acquired Baba Fine Chemicals, which will enable its foray into the semiconductor chemicals segment.
Ami, with its strong focus on innovation, has started supplying multiple intermediates for Nubeqa (Darolutamide), a prostate cancer drug, as a part of its contract with Fermion.
Also read: Vodafone Idea shares tumble 24% in 2 days, slip below Rs 10 markJM Financial believes that the revenue potential from this contract could be Rs 500 crore- Rs 720 crore for Ami. Further, the company has set up 2,000 MT production capacity for each of two electrolytes additives for Li-ion batteries, which could provide peak revenue of Rs 150 crore by FY27.“We expect Ami’s revenue to register a CAGR of 31% over FY24- 27E and reach Rs 16 bn by FY27E on the back of increasing Nubeqa intermediate demand, new CDMO contracts and electrolyte additive sales,” said the domestic brokerage firm.
It is further expected that the PAT will likely rise to Rs 260 crore with 76% CAGR over FY24-27E on account of the low base in FY24.
The shares of Ami Organics were trading 6.15% higher at Rs 1,630.65 on BSE around 2:45 pm on Friday.
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