Shares of Ami Organics Ltd surged 2% on February 24 after the company’s board approved a stock split, aimed at enhancing liquidity and making the stock more affordable for investors. The stock rose to ₹2,283.50, gaining ₹43.25 in intraday trade, as investors reacted positively to the corporate action.
The company announced in an official filing that the board has approved the sub-division of existing equity shares, where one equity share with a face value of ₹10 will be split into two shares of ₹5 each. This move is subject to shareholder approval via postal ballot and any necessary regulatory/statutory clearances. Ami Organics further stated that the record date for the stock split will be decided once shareholder approval is obtained, and a separate announcement will be made in due course.
Stock splits are typically undertaken to improve liquidity and affordability, making shares more accessible to retail investors. This move is expected to broaden Ami Organics’ investor base and potentially drive increased trading volumes in the stock.
Adding to investor optimism, Ami Organics delivered exceptional financial results in Q3FY25, reporting a more than twofold increase in net profit, reflecting the company’s strong operational efficiencies and business expansion.
For the quarter ended December 2024, Ami Organics’ profit after tax (PAT) surged to ₹45.4 crore, a 155% year-on-year (YoY) growth compared to ₹17.8 crore in the same period last year. The company’s revenue jumped 65.2% YoY to ₹275 crore, driven by robust demand across its key product segments.
In the first nine months of FY25, Ami Organics has generated ₹698 crore in revenue, nearly matching its full-year revenue from FY24, indicating a strong growth trajectory. The company also reported a 159% YoY increase in EBITDA, which rose to ₹68.7 crore in Q3FY25 from ₹26.5 crore in Q3FY24.
Profitability also improved significantly, with EBITDA margins expanding to 25%, up from 15.9% in the year-ago quarter. The improved margins reflect operational efficiencies, cost optimization, and increased contribution from high-margin segments.
Stock Details:
- Previous Close: ₹2,240.25
- Day Range: ₹2,179.20 – ₹2,292.65
- 52-Week Range: ₹1,004.45 – ₹2,644.00
- Market Cap: ₹93.80 billion
- P/E Ratio: 80.54
- Dividend Yield: 0.13%
With the stock split approval and robust earnings, Ami Organics is witnessing renewed investor interest, and analysts expect continued momentum as the company expands its footprint in the specialty chemicals and pharma intermediates market.
