Ami Organics Ltd, a leading manufacturer of specialty chemicals, has been displaying impressive performance in recent quarters. In this article, we’ll analyze the company’s most recent quarterly results and conduct a fundamental analysis using key stock ratios and values.
Understanding Key Stock Ratios
Before diving into the analysis, let’s establish the current financial position of Ami Organics Ltd:
- Market Cap: ₹ 3,960 Cr.
- Current Price: ₹ 1,087
- ROCE: 20.4 %
- ROE: 14.9 %
These values give us a preliminary snapshot of the company’s financial standing. The current market cap reflects the company’s overall value as determined by the stock market. The return on capital employed (ROCE) and return on equity (ROE) provide insight into the company’s profitability and efficiency.
Quarterly Results Analysis
Now, let’s delve into the company’s recent quarterly results:
From September 2020 to March 2023, Ami Organics has shown consistent growth in sales, moving from ₹91 Cr. to ₹186 Cr. This is a significant increase, showcasing the company’s capacity to generate revenue.
Moreover, the company’s operating profit has also seen steady growth during the same period, rising from ₹22 Cr. to ₹41 Cr. A consistent increase in operating profit indicates that the company is successfully managing its operating costs and enhancing its core business profitability.
The company’s net profit has also shown a steady upward trajectory, moving from ₹15 Cr. in September 2020 to ₹27 Cr. in March 2023. This continuous improvement demonstrates the company’s ability to generate profit after all expenses and taxes.
Fundamental Analysis
Fundamental analysis involves evaluating a company’s financials, industry position, and market conditions to determine its intrinsic value. Below are some key ratios and values that provide a deeper understanding of Ami Organics Ltd:
- Stock P/E: 47.6
- Dividend Yield: 0.28 %
- PEG Ratio: 1.35
- Profit growth: 15.8 %
- Sales growth: 18.6 %
- Debt to equity: 0.01
- Price to book value: 6.67
The company’s P/E ratio, which measures its current share price relative to its per-share earnings, stands at 47.6. This value is relatively high, indicating that investors have high expectations of the company’s future earnings growth.
The company’s dividend yield is 0.28%, suggesting that the company returns capital to its shareholders through dividends. A low debt-to-equity ratio of 0.01 signifies that the company has effectively managed its debt levels.
In terms of growth, the company has shown a profit growth of 15.8% and a sales growth of 18.6%. These numbers suggest a healthy expansion rate.
In order to comprehend a company’s financial health and investor confidence, it is crucial to understand its shareholding pattern. The shareholding pattern of Ami Organics Ltd shows how shares are distributed among different types of investors. Let’s break this down for the quarters between September 2021 and March 2023.
Promoter Holding
Promoters are the individuals or entities that have established the company and are involved in its day-to-day operations. A high promoter holding is often a positive sign, as it indicates that the promoters have faith in the company’s future.
For Ami Organics Ltd, the promoter holding has remained consistent at 41.05% until September 2022, after which it has slightly declined to 39.41%. Despite this slight decrease, the fact that the promoter holding remains significant is an encouraging sign.
Institutional Investors
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) are entities that invest on behalf of others. An increase in their holdings can be seen as a vote of confidence in the company.
The FIIs holding in Ami Organics Ltd has fluctuated, starting at 2.51% in September 2021, declining to 1.34% in December 2021, and then increasing to 6.36% by March 2023. This indicates growing interest from foreign investors.
DIIs holding has seen a mild decrease, starting at 6.3% in September 2021 and settling at 3.63% by March 2023.
Public Holding
Public holding refers to the portion of a company’s outstanding shares that are in the hands of public investors. The public holding in Ami Organics Ltd has been fairly stable, ranging between 50.14% and 52.91% during the observed period.
In Conclusion
Considering the consistent performance in quarterly results, impressive sales and profit growth, and strong key stock ratios, Ami Organics Ltd appears to be on a promising trajectory. However, potential investors should also consider external market factors and their individual risk tolerance before making any investment decisions. As always, it is recommended to consult with a financial advisor or conduct further research.
