Anupam Rasayan India Ltd. share price target

Anupam Rasayan’s revenue missed our estimates significantly due to weak demand in Agrochemical segment. EBITDA and Adj. PAT missed our estimates significantly due to operating deleverage and lower than expected other income.

Anupam Rasayan’s revenue missed our estimate due to weak demand in Agrochemical segment. EBITDA missed our estimate due to higher operating expenses.

Anupam Rasayan’s revenue beat our estimate but EBITDA missed our estimate due to higher-than-expected cost of goods sold which was partially offset by lower-than-expected employee expenses and lower than expected other expenses.
Currently, the stock is trading at 43.7x/27.8x, based on FY25E/FY26E EPS respectively.

For Q3FY24, Anupam Rasayan’s revenue declined 24.6% YoY (-24.6% QoQ) to INR 2,955 Mn. For 9MFY24, the revenue declined by 4.3% YoY to INR 10,741 Mn.

For Q2FY24, ANURAS revenue declined marginally by 0.2% YoY but increased by 1.5% QoQ to INR 3,921 Mn while for H1FY24, the revenue increased by 5.7% YoY to INR 7,785 Mn. This muted quarterly performance was due to a lack of demand from major clients in the export market and it is expected there will be an increased demand for the upcoming two quarters (H2FY24E), resulting in sales figures for the second half of the year being expected to align closely with those of the previous year.

The company has delivered a strong revenue growth of 51.3% YoY and 25.4% QoQ due to the launch of 5 new products during the quarter and robust performance from Tanfac. Besides this, the company has entered into 3 new LOIs worth of INR 28,630 Mn with a contract period of 5-7 years.

On a consolidated basis, Anupam Rasayan India Ltd (ARIL) reported revenue of INR 3.827Mn in Q3FY23 grew by +43.8% YoY and - 0.9% QoQ. YoY growth is not comparable as the effect of Tanfac’s acquisition given during the quarter. Revenue contribution from Life science - speciality chemicals and Other speciality chemicals was 82% and 18% respectively compared to 90% and 10% in Q2FY23.

Manufacturing (CSM) company, operates in Life sciences (95% of rev) and other specialty chemicals (5%) verticals. It is favorably placed in the sweet spot to capture the rising demand for specialty chemicals given its strong relationships with MNCs (Key clients- Syngenta, Sumitomo and UPL), leadership competencies into multi-step synthesis & complex chemistries such as etherification, hydrogenation, alkylation, nitration, etc and superior...

Anupam Rasayan India Ltd. is a company engaged in the custom synthesis and manufacturing of specialty chemicals in India. Company started its business as a partnership firm in 1984 as a manufacturer of conventional products and have, over the years, evolved into custom synthesis and manufacturing of life science related specialty chemicals and other specialty

Anupam Rasayan India Limited IPO Note Issue Open: Mar 12 Mar 16, 2021 Price Band: Rs. 553 555 (discount of Rs.55 for eligible employees) *Issue Size: 13,693,694 eq shares (including Employee Reservation of 220,000 Eq sh) *Issue Size: Rs. 757.3 760.0 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh

To expand business by capitalising on industry opportunities, organic, inorganic growth network In 2019, the Indian market for custom synthesis and manufacturing was valued at US$11.5 billion in 2019 for specialty chemicals accounting for ~6% of the global custom synthesis and manufacturing market. Custom synthesis manufacturing is on the rise in India while the contract research and manufacturing services market is expected to grow at 12% in the next five years, owing to strong growth from end-use demand. In addition, the China...

Anupam Rasayan India Ltd. (ARIL) is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India (Source: F&S; Report). The company evolved into custom synthesis and manufacturing of life science related specialty chemicals and...