This recently listed stock has zoomed 120% over its issue price

Ami Organics rallied 20% to Rs 1,345.70 in the intra-day trade today

Shares of Ami Organics have been on a dream run on the bourses ever since their strong stock market debut on Tuesday. The market price of the company has more-than-doubled over its issue price after the shares hit a new high of Rs 1,345.70 on the BSE in the intra-day trade.

They rallied 20 per cent today, adding on to their 20 per cent surge of Wednesday. With the past two days' rally, the stock has zoomed 120 per cent over its issue price of Rs 610 per share.

At 11:09 am, Ami Organics was trading 14 per cent higher at Rs 1,276 on the BSE, as compared to a 0.14 per cent rise in the S&P BSE Sensex. A combined around 4 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.

Ami Organics is focused towards manufacturing advanced pharma intermediates (PI) for regulated/generic APIs and New Chemical Entities (NCE) and key starting material for agrochemical and fine chemicals. The company has three manufacturing facilities situated in Gujarat with an aggregate installed capacity of 6060 Mtpa. It is one of the major manufacturers of PIs like Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban of which first two contributed around 44 per cent of FY21 revenues.

The Company has a strong market research-based model wherein it focuses on development of PI either for molecules which are under clinical trials; or for molecules which have been launched in the patented as well as generic space. It is focused on undertaking dedicated R&D in its existing product lines and in areas where there is significant growth potential.

"As a result of its R&D capabilities, it has been able to file eight process innovation patent applications in India applications (in respect of intermediates used in the manufacture of Apixaban, Rivaroxaban, Nintedanib, Vortioxetine, Selexipag, Pimavanserin, Efinaconazole and Eliglustat) which are presently published in the Official Journal of the Patent Office in India and three additional pending patent applications for which applications were made recently, in March 2021," HDFC Securities had said in an IPO note.

Motilal Oswal Financial Services, meanwhile, like Ami Organics given its wide product portfolio in PIs, diversification efforts into other specialty chemical space, strong clients’ relation across geographies and robust financials.

"It is well placed to tap opportunity in the fast growing specialty chemical market by leveraging its strong R&D and expanding product portfolio,” it said.

Synergy benefits with Gujarat Organics Ltd (GOL) would start playing out from FY22 onwards and boost profitability. Post IPO, Ami Organics will become debt free. It enjoys healthy return ratios of around 18 per cent, it added.