Ami Organics’ share price rose 20% to a new all-time high of Rs. 1,121.45 per day on BSE. The specialty chemicals company got off to a strong start on Tuesday, with a 49% premium. Since listing, the Ami Organics share price has climbed more than 23%, while 84% from the issue price of Rs 610 per share. Ami Organics’ IPO was subscribed 64.54 times. Analysts say a strong listing coupled with overwhelmingly positive sentiment for small and mid-cap stocks has led to strong purchases of Ami Organics. “Technically, Rs 1166 will be immediate resistance. Closing above that level could see a target of Rs 1,290. Support remains at Rs 1,040, ”AR Ramachandran, co-founder and trainer, Tips2Trades, told UK Time News Online.
At 3pm, Ami Organics stock was trading 20% at Rs 1,121.45 on BSE, against a 0.88% rise on S&P BSE Sensex. In terms of volume traded, 3.76 lakh shares have traded hands on BSE, while 42.13 lakh units have been traded on NSE, so far in the day. Ami Organics has now joined its listed industry peers such as Aarti Industries, Hikal, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd.
Motilal Oswal Financial Services analysts said that Ami Organics appears to be well positioned to exploit opportunities in the fast growing specialty chemicals market by leveraging its strong R&D and expanding product portfolio. It has a large portfolio of products in IP, efforts to diversify into other areas of specialty chemicals, a strong customer relationship in all geographies and a solid financial position.
The brokerage firm also added that at the end of FY21, Ami Organics had completed the acquisition of Gujarat Organics, which increased its capacity from 3,600 MTA to 6,060 MTA. “The acquisition would add preservatives (parabens – end use in cosmetics, animal feed, personal care) and other specialty chemicals (end use in cosmetics, polymer dyes, agrochemicals) in the AOL’s existing portfolio, which has a significant market share globally, ”he added. .
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