Speciality chemical manufacturer Anupam Rasayan India’s shares gained 8.16% on Monday’s early trades to reach an intraday high of ₹ 1069.75 apiece on the National Stock Exchange (NSE) after the company won a huge project. Its shares were trading 7.07% higher at ₹ 1059.05 apiece at 12:28 PM.
Anupam Rasayan manufactures custom synthesis and speciality chemicals. It has a diverse base of Indian as well as global customers. The company has six manufacturing facilities in India with an aggregate installed capacity of about 27,000 MT as of December 31, 2022.
According to an exchange filing, the company on Thursday, April 13, 2023, signed a letter of intent worth revenue of $ 182 million or ₹ 1,500 crores for the next seven years, with a leading Japanese multinational to manufacture and supply three high-value speciality chemicals. This product will be manufactured in the company’s existing manufacturing facilities.
Anand Desai, Managing Director of Anupam Rasayan said that Anupam Rasayan will be the exclusive supplier for these molecules. This project is in line with the company’s strategy of expansion in Fluoropolymer and Electronic segments.
Anupam Rasayan is a small-cap company with a market capitalization of ₹ 10,629 crores. It has a low return on equity of 9.22%, but an ideal debt-to-equity ratio of 0.50. Its shares were trading at a price-to-earnings ratio (P/E) of 52.56, which is higher than the industry average of 14.77, indicating that the stock is undervalued as compared to its peers.
In the past month, its share price has risen by more than 41%. About three weeks ago, it had won another order worth ₹ 984 crores to supply new-age advanced intermediate for life science active ingredients.
In another development on March 22, 2023, the company signed a memorandum of understanding (MoU) with the Gujarat government to invest ₹ 670 crores to set up three new plants. These plants would come up in Gujarat and would be commissioned by 2025. They will focus on manufacturing fluorochemicals to service the demands of clients in the agrochemical, polymers and pharma sectors in the US, Europe and Japan.
Written by Simran Bafna
