1. 🧬 At a Glance
Acutaas Chemicals (FKA Ami Organics) is a specialty chemicals company focused on pharma intermediates, agrochemicals, and now… semiconductor chemicals. With a ₹9,200 Cr market cap, 41% 5Y PAT CAGR, and zero serious debt, it’s got the ingredients of a compounder. But a P/E of 58x and recent promoter stake cuts mean you better look closer before sipping the Kool-Aid.
2. 🧠 Introduction with Hook
- Pharma + semiconductors in one company? Sounds like a LinkedIn overachiever.
- Acutaas started as a humble pharma intermediates maker and now wants to supply chemicals to chip fabs in South Korea.
- ROCE of ~20%, profits up 3x in 3 years, cash flows finally kicking in.
So… is this the new Neuland Labs x Tata Elxsi combo? Or just high-multiple hype?
3. 🏭 WTF Do They Even Do? – Business Model
Acutaas operates in 3 verticals:
- Pharmaceutical Intermediates (core biz)
- Advanced intermediates for regulated APIs and New Chemical Entities (NCEs)
- Products for oncology, neuro, anti-psychotic APIs
- Agro & Fine Chemicals
- Custom intermediates for global crop protection majors
- Includes key starting materials (KSMs)
- New Bet – Semiconductor Chemicals 🧪
- JV with Korean partner (KRW 30B) to make chip-grade fine chemicals
- Strategic: High-margin, import substitution play, but early stage
Clients include 8 of the top 10 global pharma companies, but now diversifying hard.
4. 📈 Financials – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25E |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 341 | 520 | 617 | 717 | 1,007 |
| Net Profit (₹ Cr) | 54 | 72 | 83 | 49 | 160 |
| OPM (%) | 24% | 20% | 20% | 18% | 23% |
| ROE (%) | 13% | 10% | 13% | 16% | 16% |
| EPS (₹) | 8.57 | 9.87 | 11.43 | 5.80 | 19.38 |
🎯 FY25 TTM looks strong:
→ ₹308 Cr Q4 sales, ₹63 Cr PAT (EPS ₹7.63)
→ OPM surged to 28% in March 2025 Qtr
5. 📊 Valuation – Cheap, Meh, or Crack?
- CMP: ₹1,130
- TTM EPS: ₹19.38 → P/E = 58x
- Book Value: ₹160 → P/B = 7.06x
- Dividend Yield: 0.13%
🧠 This is NOT cheap — but specialty chem never is when it’s on the upcycle.
High valuations are riding on:
- Semiconductor chemicals upside
- Pharma & agrochem order book
- Clean balance sheet + cash flows
6. 🔥 What’s Cooking – News, Triggers, Drama
🧪 Korean JV (June 2025):
- KRW 30B (~₹180 Cr) investment
- Target: chemicals for chipmaking fabs
- Big optionality, but will take 2–3 years to show up in revenues
📉 Promoter stake cut:
- Down from 41% to 35.96% over 2 years
- Offloaded to FIIs/DIIs – not ideal, but no red flags yet
💼 DII holding at 18.3%, FII at 16.5% – institutional buildup strong
🧾 Cash flow reinvestment:
- ₹130 Cr capex underway
- ₹224 Cr investing outflow in FY25
7. 💳 Balance Sheet – How Much Debt, How Many Dreams?
📊 Debt: ₹13 Cr – almost nothing
💰 Reserves: ₹1,269 Cr
🏗️ Assets: ₹1,549 Cr
🏭 Fixed + CWIP: ₹700 Cr+
This is a net cash company, funding growth internally. Low leverage = high flexibility.
8. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Est.) |
|---|---|---|
| FY22 | -12 | Negative |
| FY23 | 66 | 40+ |
| FY24 | 125 | 90+ |
| FY25 | 118 | ~80 |
🧾 Investing cash flow is deeply negative due to expansion
💸 Free cash flow turning positive is a BIG shift in FY24–25
9. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 16.0% |
| ROCE | 19.9% |
| OPM | 23% (TTM) |
| Debt/Equity | ~0.01 |
| Cash Conversion Cycle | 121 days 😬 |
| Working Capital Days | 126 |
⚠️ High working capital cycle — pharma + chem biz often stuck in receivables
✅ ROCE nearing 20% = efficient operations
10. 💵 P&L Breakdown – Show Me the Money
- FY25 TTM Revenue: ₹1,007 Cr
- EBITDA: ₹232 Cr
- Net Profit: ₹160 Cr
- PAT Margin: ~15.9%
- EPS: ₹19.38
Expect margins to stay above 20% if semi-chemicals gain traction in FY26–27
11. 🧪 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | M-Cap (Cr) |
|---|---|---|---|---|
| Divi’s Labs | 83x | 15.3% | 31.7% | ₹1.8L Cr |
| Neuland Labs | 48x | 32% | 27% | ₹11K Cr |
| Anupam Rasayan | 43x | 14.1% | 25% | ₹13K Cr |
| Acutaas | 58x | 16% | 23% | ₹9,250 Cr |
🥼 Positioned as a midcap pharma+chem hybrid, but not a pure CDMO or API maker. That’s niche.
12. 🧩 Misc – Shareholding, Promoter Moves, Red Flags?
- Promoters: 35.96%
- FIIs: 16.48%
- DIIs: 18.31%
- Public: ~29.2%
✅ Promoter pledging: Zero
📉 Stake dilution: Yes, but offset by high DII interest
📢 Investor Meets: June 2025 Singapore & HK roadshows
Management is actively pitching the global growth story.
13. 🧑⚖️ EduInvesting Verdict™
“Acutaas is like that quiet chemistry nerd who suddenly got a K-drama offer and now everyone’s paying attention.”
✅ Pharma + Fine Chemicals + Semi optionality
✅ Asset-light, debt-light, cash-flow positive
⚠️ Rich valuation needs flawless execution
⚠️ Promoter dilution isn’t great, but not fatal
🎯 Fair Value Range
Assume FY26E EPS = ₹27–30
Assigning P/E of 40–45 (premium for niche + clean balance sheet)
🧮 Fair Value Range: ₹1,080 – ₹1,350
(Current price ₹1,130 → near mid-point. No margin of safety, but no froth either.)
Tags: Acutaas Chemicals, Ami Organics, Semiconductor Chemicals, Pharma Intermediates, Specialty Chemicals, Korean JV, EduInvesting
✍️ Written by Prashant | 📅 July 8, 2025
