JM Financial maintains buy rating on Ami Organics

JM Financial has recommended buying shares of Ami Organics with a target price of Rs 2,605. The current market price is Rs 2,199.95. The analysts expect that the stock can reach this target within a year. Ami Organics, which is part of the chemicals sector, reported strong financial results for the third quarter of 2024. The company had a total income of Rs 276.66 crore, which is an increase of over 62% compared to the same quarter last year. It also reported a net profit of Rs 45.45 crore. Key factors driving growth for Ami Organics include strong demand for Nubeqa intermediates and sales of electrolyte additives. Bayer, which is associated with Ami, is optimistic about the sales potential for its drugs in the coming years, showing a strong market opportunity. Ami Organics was founded in 2007 and has a market capitalization of Rs 9,033.62 crore. The company's main products include organic chemicals. As of December 31, 2024, it had 4 crore shares outstanding. The management team of Ami Organics includes several notable figures. The company's auditors are Maheshwari & Co. Promoters hold nearly 36% of the company’s shares, while foreign and domestic institutional investors also have a share. JM Financial predicts that Ami Organics will achieve a strong earnings growth of 43% annually over the next few years. They maintain their buy recommendation with a target price based on expected earnings per share growth.