Anand Rathi has ‘Buy’ tag on this newly listed specialty chemical stock

With presence in high growing and niche markets, Ami Organics According to brokerage house Anand Rathi, Ltd. is poised to continue with strong growth in the mid-term. It has launched coverage on specific chemical stocks with a buy rating and a target price of 1,354 per share.

Going forward, the company plans to increase its utilization levels at its newly acquired facility and drive growth through the launch of new products and increase in volumes in existing products, the brokerage note said. Is.”

Anand Rathi said that the company’s business is backed by a strong and diversified product portfolio, backed by strong R&D and process chemicals prowess, which enables it to create an entry barrier in the chemical manufacturing industry.

Under its Specialty Chemicals segment, Amy Organics manufactures key starting raw materials for agrochemicals and fine chemicals companies. It has recently acquired two facilities from Gujarat Organics Limited (GOL) to help it enter into preservatives and other specialty chemicals used in the manufacturing of cosmetics, dyes, polymers and agrochemicals.

The company is the largest manufacturer and supplier of intermediates such as trazodone, dolutegravir, entacapone, nintedanib, pazopanib, apixaban, with up to 90% market share in some products.

During the half-yearly results, the company reported a 51% growth in its consolidated revenue, while the operating margin for the company stood at 21%, while its PAT margin stood at 13.2%, the brokerage highlighted.

Shares of Amy Organics debuted on the stock market in September of this year. The stock is currently trading around 983 each from its issue price 610.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.