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HBM memory prices are rising. India doesn't manufacture HBM chips. So I asked myself a different question... Can India still benefit from the AI memory boom? After digging deeper into the semiconductor supply chain, I found one Indian company that could quietly benefit, not by making chips, but by supplying the specialty chemicals used to manufacture them. The timing is interesting too: the stock has just hit a fresh 52-week high and entered blue-sky territory, with no historical resistance overhead. Here's what I found. 🧵👇 🔍 First, what is HBM? HBM (High Bandwidth Memory) is the next generation of memory used in AI GPUs. Unlike the DDR4/DDR5 RAM in our laptops, HBM stacks multiple DRAM chips vertically, delivering much higher bandwidth while consuming less power. That's why it's become the preferred memory for AI training and inference workloads in modern data centres. 🧠 AI isn't just creating GPU winners. Everyone is focused on NVIDIA, Micron and SK Hynix. But every HBM chip goes through dozens of complex manufacturing steps. Each wafer requires highly specialized chemicals like photoresists, wet chemicals and electronic-grade formulations. If AI inference continues to grow... ➡️ More HBM demand ➡️ More semiconductor production ➡️ Higher demand for semiconductor chemicals That's where this company enters the picture. 🧪 Why this company caught my attention It isn't making chips. Instead, it's building a semiconductor chemicals business. A few things stood out: • India's only semi-grade photoresist manufacturer • Already shipping semiconductor chemicals to customers in Japan & Korea • Strong export presence across Asia & Europe • Korean JV focused on higher-value semiconductor chemicals • Management expects semiconductor chemicals to become an independent growth engine by FY28 If semiconductor manufacturing continues expanding globally, this could become an interesting long-term opportunity. 🔋 And that's not the only tailwind... The company isn't betting only on semiconductors. Management is building three long-term growth engines: ✅ Pharma & CDMO ✅ Battery Chemicals ✅ Semiconductor Chemicals The battery chemicals business has already started commercial production, and management says the current capacity is backed by customer contracts for the next three years. If execution goes well, that's exposure to two structural themes—AI infrastructure and EVs. 📈 The numbers support the story Growth has been impressive. • Sales CAGR (5Y): 32% • Profit CAGR (5Y): 46% • TTM Profit Growth: 124% Management has guided for around 25% revenue growth in FY27 while maintaining healthy margins. 🏦 Institutions seem to agree Over the past few years: • FIIs increased their stake from ~7% to ~19% • DIIs increased from ~5% to ~20% • Public shareholding reduced significantly Institutional ownership has steadily increased alongside improving business fundamentals, which is generally a positive sign. 👀 So which company is it? Acutaas Chemicals (formerly Ami Organics). Until recently, many investors viewed it primarily as a pharma and specialty chemicals company. Management now appears to be building a much broader platform with meaningful exposure to semiconductor chemicals and battery materials. That's what caught my attention. ⚠️ But I wouldn't chase it here... The stock has had an incredible run over the last year and is now trading near all-time highs. Valuation has also expanded. • Historical median P/E: ~59 • Current P/E: ~80+ While strong EPS growth can naturally compress valuations over time, it's fair to say that a good amount of optimism is already priced in. 📊 Technical view From a chart perspective, the long-term trend remains very strong. ✅ Higher highs and higher lows remain intact. ✅ The stock continues to respect its long-term uptrend. That said, the stock looks a bit stretched in the short term. • Weekly RSI is around 77, close to levels where the stock has historically cooled off. • Price is trading well above its 10-week EMA. Personally, I'd be more comfortable accumulating on a pullback towards the 10-week EMA, which is currently around ₹3,100, rather than chasing a vertical move. 🎯 My takeaway I'm not calling this an "AI stock." I'm looking at it as a potential second-order beneficiary of the global semiconductor manufacturing cycle, with additional optionality from battery chemicals. Definitely a company I'll be tracking closely over the next few years and would invest on small dip. What do you think? Am I missing anything in this thesis? Not a buy/sell recommendation. Please do your own research.

ThatOptionGuy's tweet photo. HBM memory prices are rising.

India doesn't manufacture HBM chips.

So I asked myself a different question...

Can India still benefit from the AI memory boom?

After digging deeper into the semiconductor supply chain, I found one Indian company that could quietly benefit, not by making chips, but by supplying the specialty chemicals used to manufacture them.

The timing is interesting too: the stock has just hit a fresh 52-week high and entered blue-sky territory, with no historical resistance overhead.

Here's what I found. 🧵👇

🔍 First, what is HBM?

HBM (High Bandwidth Memory) is the next generation of memory used in AI GPUs.

Unlike the DDR4/DDR5 RAM in our laptops, HBM stacks multiple DRAM chips vertically, delivering much higher bandwidth while consuming less power.

That's why it's become the preferred memory for AI training and inference workloads in modern data centres.

🧠 AI isn't just creating GPU winners.

Everyone is focused on NVIDIA, Micron and SK Hynix.

But every HBM chip goes through dozens of complex manufacturing steps.

Each wafer requires highly specialized chemicals like photoresists, wet chemicals and electronic-grade formulations.

If AI inference continues to grow...

➡️ More HBM demand
➡️ More semiconductor production
➡️ Higher demand for semiconductor chemicals

That's where this company enters the picture.

🧪 Why this company caught my attention

It isn't making chips.

Instead, it's building a semiconductor chemicals business.

A few things stood out:

• India's only semi-grade photoresist manufacturer
• Already shipping semiconductor chemicals to customers in Japan & Korea
• Strong export presence across Asia & Europe
• Korean JV focused on higher-value semiconductor chemicals
• Management expects semiconductor chemicals to become an independent growth engine by FY28

If semiconductor manufacturing continues expanding globally, this could become an interesting long-term opportunity.

🔋 And that's not the only tailwind...

The company isn't betting only on semiconductors.

Management is building three long-term growth engines:

✅ Pharma & CDMO
✅ Battery Chemicals
✅ Semiconductor Chemicals

The battery chemicals business has already started commercial production, and management says the current capacity is backed by customer contracts for the next three years.

If execution goes well, that's exposure to two structural themes—AI infrastructure and EVs.

📈 The numbers support the story

Growth has been impressive.

• Sales CAGR (5Y): 32%
• Profit CAGR (5Y): 46%
• TTM Profit Growth: 124%

Management has guided for around 25% revenue growth in FY27 while maintaining healthy margins.

🏦 Institutions seem to agree

Over the past few years:

• FIIs increased their stake from ~7% to ~19%
• DIIs increased from ~5% to ~20%
• Public shareholding reduced significantly

Institutional ownership has steadily increased alongside improving business fundamentals, which is generally a positive sign.

👀 So which company is it?

Acutaas Chemicals (formerly Ami Organics).

Until recently, many investors viewed it primarily as a pharma and specialty chemicals company.

Management now appears to be building a much broader platform with meaningful exposure to semiconductor chemicals and battery materials.

That's what caught my attention.

⚠️ But I wouldn't chase it here...

The stock has had an incredible run over the last year and is now trading near all-time highs.

Valuation has also expanded.

• Historical median P/E: ~59
• Current P/E: ~80+

While strong EPS growth can naturally compress valuations over time, it's fair to say that a good amount of optimism is already priced in.

📊 Technical view

From a chart perspective, the long-term trend remains very strong.

✅ Higher highs and higher lows remain intact.
✅ The stock continues to respect its long-term uptrend.

That said, the stock looks a bit stretched in the short term.

• Weekly RSI is around 77, close to levels where the stock has historically cooled off.
• Price is trading well above its 10-week EMA.

Personally, I'd be more comfortable accumulating on a pullback towards the 10-week EMA, which is currently around ₹3,100, rather than chasing a vertical move.

🎯 My takeaway

I'm not calling this an "AI stock."

I'm looking at it as a potential second-order beneficiary of the global semiconductor manufacturing cycle, with additional optionality from battery chemicals.

Definitely a company I'll be tracking closely over the next few years and would invest on small dip.

What do you think? Am I missing anything in this thesis?

Not a buy/sell recommendation. Please do your own research.

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Yogi

@ThatOptionGuy

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