Jefferies Makes ‘Buy’ Call on Anupam Rasayan, Sees 17% Rise; Stocks jump 5%

Shares of Anupam Rasayan rose more than 5% on Friday after global brokerage firm Jefferies issued a “buy” rating on shares of the specialty chemicals company.

As of 12:05 p.m., the stock was trading 2% higher at Rs 882.10 on BSE.

Jefferies has set a target price of Rs 1,040, meaning it sees a 16.99% upside in Anupam Rasayan shares, which were listed at Rs 888.95 on BSE at the time of writing.

According to the brokerage, the company is well positioned to benefit from “China + 1” with its diversified chemical expertise. Anupam Rasayan’s strong order pipeline provides medium-term growth visibility, the brokerage said.

He forecast revenue/EBITDA/profit CAGR of 33%/29%/31% FY22-24 and said valuation is favorable after a 16% correction.

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Anupam Rasayan debuted in the market in March 2021 with a 6.3% discount on BSE. It ended the trading day with a discount of 5.2%. Its IPO worth Rs 760 crore was subscribed 44.1 times.

The share reserved for retail investors was subscribed 10.77 times and that of non-institutional investors at 97.42 times and qualified institutional buyers at 65.74 times. Employees placed 1.71 times more bids compared to the reserved share.

During the quarter ended December 31, 2021, Anupam Rasayan recorded a quarterly net profit of Rs. 37.90 crore, up 75.1% from Rs. 21.65 crore during the same period ago one year old.

The company began operations in 1984 with conventional products and now manufactures specialty chemicals that involve multi-step synthesis and complex chemistries. It has six multi-purpose manufacturing facilities based in Gujarat with a combined total installed capacity of approximately 23,396 metric tons.

Earlier in January, the chemical manufacturer announced that it had signed a Letter of Intent (LoI) worth $95 million (approximately Rs 700 crore) with a multinational crop protection company for the supply of new active ingredients related to life sciences.

The company’s chief financial officer, Afzal Malkani, told CNBC-TV18 that the term of this letter of intent is five years and the annual revenue will be Rs 140 crore.


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