Interesting developments, let me try to create a best case scenario for this.

Current Asset Turnover ~1.67
Assuming Deepak Nitrite will reach this number eventually with the current capex, total potential revenue ~ 24k + 7k (current). Does this mean it has potential to become > 4x revenue from here?

Looking at this hypothetical scenario, the current valuation seems cheap!
Key item is (if and) when does all this comes to fruition, would be interesting to see if the management has more color to add.

Invested.

Is there any pricing power?
API manufacturers (customers of AMI) keep up to 3 vendors in different geographies (China, EU, India). The manufacturers ensures AMI competes with other suppliers for orders. The competition depends upon various factors including cost. AMI owns somewhere above 50-60% MS for their suppliers and going by the commentary, management aims to maintain that (so cost is going to be parameter here)

So is there no moat?
Management had previously clarified that the moat comes with the time of the project. As time progresses, the API manufacturer starts hesitating to change suppliers. However, that doesn’t mean manufacturers cannot. Management very honestly called out that the business can be replicated but technology/time will need to be invested.

Will pricing power come in the future?
Since AMI doesn’t want to end up competing with their customers they will unlikely make the final products. So there is going to be some pricing power but it has limitations.
Perhaps we should keep a watch as AMI grows or if comes up with something outsmarting competition.

Disclosure: I am invested in AMI organics. This is my understanding and I may be wrong. I may change my views or exit/add/sell my investment anytime.

True, on the sarcastic note no one is thinking of scale at which AI, will consume the jobs.

Yeah margin of safety Vs Value trap is always something to be careful of. Everyone know its a cheap valuations vs history. But if China govt keeps doing sudden things then it becomes a trap for sure.