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Ami Organics extends post-listing rally. Should you buy or hold?

Ami Organics has a diversified portfolio where it is in API, CPC, granules and specialty chemical manufacturing business. All these business are in profitable zone these days. Photo: Courtesy Ami Organics websitePremium
Ami Organics has a diversified portfolio where it is in API, CPC, granules and specialty chemical manufacturing business. All these business are in profitable zone these days. Photo: Courtesy Ami Organics website

  • Ami Organics share price today opened with an upside gap of 98 per equity share and went on to hit its new lifetime high of 1,346.40 per stock levels — logging around 20 per cent intraday rise from its yesterday's close of 1122 apiece

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Ami Organics shares extended its post-listing rally for third successive trade session and climbed new peak of 1,346.40 per stock levels — logging 120 per cent rise from its issue price of 603 to 610. Ami Organics share price today opened with an upside gap of 98 per equity share and went on to hit its new lifetime high — registering around 20 per cent intraday rise from its yesterday's close of 1122 apiece. According to stock market experts, Ami Organics has a diversified portfolio. It is in API, CPC, granules and specialty chemical manufacturing and all these products are in profitable zone in both domestic and global merchandise.

Experts went on to add that market is highly bullish on Ami Organics shares post-listing and those who missed to get the chemical stock through share allotment process are buying the counter now. However, market experts advised investors to avoid taking any fresh position in the counter as the scrip is quoting much higher from its actual valuations. They advised fresh investors to wait for profit-booking and urged existing share holders to hold the counter with trailing stop loss at 1100 levels.

On what is driving Ami Organics share price rally post-listing; Ravi Singhal, Vice Chairman at GCL Securities said, "Ami Organics has a diversified portfolio where it is in API, CPC, granules and specialty chemical manufacturing business. All these business are in profitable zone these days, especially API and CPC. In the last one year, API and CPC prices have almost doubled that is strengthening the financials of the company. CPC is in high demand in global merchandise and Ami Organics is one of the 8-10 limited CPC suppliers. So, its CPC business is expected to remain a profitable business. In the last one year, API prices have almost doubled and it is expected to further go northward. So, API business is also expected to remain profitable for the company. So, market is expecting strong quarterly numbers next month and hence Ami Organics share price has been climbing new peaks post-listing."

Suggesting Ami Organics shareholders to further hold the counter; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Ami Organics may continue to perform well in long run on strong domestic and global opportunities whereas China Plus One strategy may also provide robust growth to the specialty chemical companies in India. We would recommend the stock to hold from a long-term perspective." The Swastika Investmart expert went on to add that market those who have shareholding in Ami Organics should remain invested in the counter on the back of strong fundamentals and a positive outlook for the sector.

Unveiling investment strategy in regard to Ami Organics shares; Ravi Singhal of GCL Securities said, "Ami Organics shareholders should further hold the counter maintaining trailing stop loss at 1100 per stock levels. However, one should avoid fresh buying at these levels. Fresh position can be taken at around 1150 per stock levels maintaining stop loss at 1100 per equity share mark. The stock may go up to 1470 levels in next 3 month."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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