From Pill to Chip: Small-Cap Pharma Company to Enter the High-Growth Semiconductor Industry with High ROE and ROCE!

An ace investor, Ashish Kacholia holds 2.13 per cent stake in in the company, aggregating to Rs 83.71 crore.

Ami Organics Limited, a global manufacturer of pharmaceutical intermediates and speciality chemicals, has announced the acquisition of a 55 per cent partnership interest in Baba Fine Chemicals, a fine speciality chemicals company focused on custom synthesis and manufacturing of intermediates from two partners for the purchase consideration of Rs 68.2 crore.   

This acquisition marks Ami Organics' entry into the high entry barrier semiconductor industry, in line with its strategy of expanding its speciality chemicals division to focus on niche products with low competition and high entry barriers. The agreement gives Ami Organics access to complementary products of Baba Fine Chemicals that are also focused on the electronic industry, mainly semiconductors.   

Ami Organics Limited operates as a diligently managed pharmaceutical company. The company specializes in varied products, custom synthesis and contract manufacturing. Ami Organics serves customers in India.  

Talking about the financials, the company has a market cap of Rs 3,850 crore. The company reported positive numbers in its Quarterly Results and annual results. The stock has an ROE of 21.28 per cent and a ROCE of 23.71 per cent. An ace investor, Ashish Kacholia holds 2.13 per cent stake in in the company, aggregating to Rs 83.71 crore.

On Monday, shares of Ami Organics surged to an intraday high of Rs 1,099 per share, up 3.70 per cent from its previous closing of Rs 1.059.80 per share. The stock has a 52-week high of Rs 1,182.40 and a 52-week low of Rs 826. Today, shares of the company saw a spurt in volume by more than 2.57 times on BSE.  

Investors should keep an eye on this BSE Small-Cap stock.