About Company:
Incorporated in 2004, Ami Organics Limited is one of the leading research and development driven manufacturers of specialty chemicals. The company manufactures different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) for New Chemical Entities, and material for agrochemicals and fine chemicals.
The company has developed over 450 Pharma intermediates across 17 key therapeutic areas i.e.anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. It supplies its products to more than 150 customers (including international customers) directly in India and in 25 countries overseas i.e. Europe, USA, China, Israel, Japan, Latin America, etc. Laurus Labs, Cadila Healthcare, Cipla Ltd are some of the domestic customers whereas Organike s.r.l.a. Socio Unico, Fermion Oly, Medichem S.A. and Midas Pharma GmbH are some of the international customers.
Competitive strengths:
- One of the leading manufacturers of certain Pharma Intermediates i.e. Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban.
- Strong and diversified product portfolio with 450+ Pharma Intermediates across 17 therapeutic areas.
- Extensive geographical presence and diversified customer base.
- Strong R&D, sales and marketing capabilities
- Consistent financial performance track record.
Ami Organics Products:
Pharma intermediates Business – advance Pharma intermediates used for manufacturing NCE and API in India and overseas.
Speciality Chemicals – speciality chemicals which are primarily used in fine and agrochemical chemicals.
Custom Manufacturing –have capacity to manufacture advance pharmaceutical intermediates and other specialty chemicals.
Company Promoters:
Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel and Parul Chetankumar Vaghasia are the company promoters.
Company Financials:
Growth potential:
Plan to introduce new products - the company constantly plans to introduce new product verticals and develop its R&D capabilities to find an edge over its competitor.
Focus on cost efficiency - the company has developed backward integration capabilities for key raw materials that have helped them in minimizing reliance on third-party vendors.
Diversification of business - the company is in the process of building its synergies and such inorganic expansion will help them build synergies going forward
Key Risk:
Highly regulated industry – subject to strict quality requirement, regular inspections, and audit.
Dependency in therapeutic areas- company get significant portion of its revenue from the sale of product in therapeutic areas.
Relationships with customers - the top ten customers of the company contribute a major part of its revenue. Its inability to maintain good relationships with top 10 customers could hurt the financials of the business.
Objects of the Issue:
- Repayment/prepayment of certain financial facilities availed by our Company.
- Funding working capital requirements of our Company.
- General corporate purposes.
IPO Details:
You should apply for it or not ?
Company has reported a very strong growth over the previous year, aided by the acquisition of Gujarat organics during the fiscal year. Company’s bottom line has doubled over the previous year also company has reported healthy margins and return ratios.
Given factor such as good growth in bottom line, healthy margins, robust return ratios, high market share in key product. Seeing factor mention above we are positive on company one can apply for listing gain and also for long term.
*investment are subject to market risk, read documents before investing. We are not SEBI registered advisor please consult SEBI advisor regarding same.*