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Ami Organics: Ami Organics has a dominant presence in a few of the pharma intermediates and its export presence is significant, at 52% of sales. The key re-rating trigger for the company at play is the improved operations of the recently acquired facilities from Gujarat Organics. This has helped increase the share of chemicals in total revenue to 22% in Q3FY22 from 4% last year. The company is consolidating its chemical business at Jhagadia to manufacture preservatives and salicylic acid. Production of pharma intermediates is supported by its USFDA approved plant in Sachin, Gujarat, which has an installed capacity of 2,460 tonnes. Ami Organics has a diversified portfolio in the pharma intermediates segment, catering to 17 therapeutic areas. This helps it to ride a lean patch in certain areas. Over a medium term, the management guides for a 25% CAGR growth in top line, backed by an expansion of the Ankleshwar facility. The company is planning to launch 20-25 molecules in the pharma segment and 4-5 molecules in the chemicals business annually. Positive on Ami Organics as there has been strong traction in export segment and expansion in Ankleshwar unit to support the growth.
Axis Bank: Axis Bank, will buy the consumer banking business of Citi in an all-cash deal valued at $1.6 billion. The deal includes Citi’s credit cards, retail banking, wealth management and consumer loan. The transaction also includes the sale of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio. Citibank India serves 2.9 million retail customers with 1.2 million bank accounts and caters to 3,000 corporate clients. The transaction will also include approximately 3,600 Citi employees supporting the consumer businesses in India, who will transfer to Axis upon completion of the proposed transaction. The transaction is expected to close in the first half of calendar year 2023 subject to requisite regulatory approvals. One of the key attractions for Axis Bank was Citi’s credit card business. Average spends per card for Citibank remains 1.4 times higher than the industry average. Axis Bank, which has a credit card base of 8.6 million, will add another 2.55 million from Citi after acquisition. Positive for Axis Bank as the acquisition of Citi bank retail portfolio will augment its retail business and one of the key positive for Axis Bank is Citi's credit card business which has immense growth opportunity.
Info edge: Continued traction in hiring trends and improving demand trajectory in the real estate space is positive for Info Edge. The data for FY22 untill January 2022 from EPFO, indicates strong momentum in the formal job market. Company's core business with market share of 62% is a key beneficiary of the record hiring in the IT sector. Given the large deal wins, expanding software market and high attrition, the demand trend is expected to continue in the near to medium term. Further, company's which caters to real estate business portal is expected to benefit from real estate up cycle supported by favorable interest rates and likely improvement in new launches, given that absorption is picking up. Positive on Info edge given the strong traction in hiring and real estate portal business.