Recommendation from Speciality Chemicals and Engineering - Industrial Equipments sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.[EasyDNNnews:PaidContentStart]

AMI ORGANICS LTD

CMP - ₹1,133.70
BSE CODE 543349
Volume 37,165
Face Value ₹10
Target ₹1,210 - 1,260
Stoploss ₹1,078 (CLS)

Ami Organics is one of the leading research and development-driven manufacturers of speciality chemicals. In Q4FY23, the company’s revenue from operations surged by 29.90 per cent from last year’s same quarter to ₹186.4 crore. The EBITDA level of the company stood at ₹40.80 crore, witnessing a surge of 58.13 per cent from the March 2022 quarter. The net profit of the company zoomed by 27.70 per cent from the corresponding quarter last year to ₹27.20 crore. The total revenue for the full year increased by 19 per cent compared to the previous year, amounting to ₹621 crore. This growth can be attributed to the strong performance of the Advance Pharmaceutical Intermediates business, which saw a remarkable 22 per cent YoY growth. Furthermore, the company has made progress in securing long-term exclusive contracts with customers, further establishing a solid foundation for future growth. Hence, we recommend BUY.
 

KPI Green Energy Ltd

CMP - ₹531.65
BSE CODE 542323
Volume 67,453
Face Value ₹10
Target ₹572 - 580
Stoploss ₹512 (CLS)

The group has a rich history and has achieved incredible growth in telecom infra and is now moving forward with huge potential in renewable energy. As an independent power producer and a service provider to captive power producers, the company develops, builds, owns, operates, and maintains solar power plants. In addition to commissioning projects, the company's continuous order inflow helps to keep its order book robust. Considering the company's financial performance, it reported an outstanding growth of over 188 per cent from ₹62.20 crore registered in Q3FY22, recording total revenue of ₹179.21 crore in Q3FY23. When comparing the net profit for the third quarter of FY23 to the same quarter last year, it soared by 162.25 per cent from ₹13.14 crore to ₹34.46 crore. Greater RoE and RoCE ratios indicate strong profitability. Shares of the company have skyrocketed around 125 per cent in the past year, with returns of about 17 per cent in just the last one month! Hence, we recommend BUY.

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