Anupam Rasayan India: A Chemical Stock with 35% Revenue Growth Guidance for FY26 – Should You Add It to Your Watchlist?
Anupam Rasayan India : India’s specialty chemicals sector is booming, projected to reach $64 billion by 2025 with a CAGR of 12%. One of the standout performers in this space is Anupam Rasayan India Ltd, a key player in the custom synthesis and manufacturing of specialty chemicals. The company has issued a strong revenue growth guidance of 30-35% for FY26, making it an attractive stock to watch for investors looking for high-growth opportunities.
Stock Performance and Price Movement
Anupam Rasayan’s shares are currently priced at ₹788, with a market capitalization of ₹8,664 crore. The stock has seen fluctuations, trading between a 52-week high of ₹945 and a low of ₹601. It recently closed at ₹779.85 per share, reflecting a minor dip of 0.33% from its previous close of ₹782.45.
Despite short-term volatility, the long-term growth potential remains strong, backed by robust fundamentals and strategic expansions.
Growth Prospects: What’s Driving the Surge?
The company’s FY26 revenue growth guidance of 30-35% is fueled by several factors:
✅ Strong Demand from Pharma & Polymer Segments – Increasing global and domestic demand for specialty chemicals in these sectors is a major growth driver.
✅ Robust Order Book – With an order backlog of ₹10,700 crore, revenue visibility remains high for the coming years.
✅ New Product Launches – The company launched 17+ new molecules in FY24 and plans 6+ more in FY25, with a pipeline of 65+ molecules under R&D.
✅ Tanfac Acquisition – Strengthens its fluorination chemistry segment, ensuring a steady supply of key raw materials like KF (potassium fluoride) and HF (hydrofluoric acid).
✅ Growing International Presence – Japan is expected to contribute one-third of total sales within 2-3 years, backed by long-term contracts.
Financial Performance: Solid Q3 FY25 Results
Anupam Rasayan has shown impressive financial growth despite challenges in the overall chemical sector.
| Metrics | Q3 FY25 Performance | 9M FY25 Performance |
|---|---|---|
| Revenue | ₹390 Cr (↑ 32% YoY) | ₹938 Cr (↓ 13% YoY) |
| EBITDA | ₹121 Cr (↑ 48% YoY) | ₹262 Cr (↓ 14% YoY) |
| EBITDA Margin | 31% (↑ 389 bps) | – |
| PAT | ₹54 Cr (↑ 108% YoY) | – |
While Q3 results showed strong revenue and profit growth, the nine-month period (9M FY25) saw a slight decline, mainly due to short-term market fluctuations.
Capex, Sustainability, and Margins
Anupam Rasayan is heavily investing in future growth:
🔹 Capex Completion – The company has almost completed ₹650 crore of its ₹670 crore capex, with all new plants expected to be operational by March 31, 2025.
🔹 Renewable Energy Initiative – Investing ₹59 crore in a 9.2 MW hybrid power plant, aiming to save ₹15 crore annually and achieve 65% green energy usage.
🔹 Stable Margins – EBITDA margins are expected to remain between 26-28%, with an upward trend driven by product mix improvements.
Debt & Working Capital Management
The company is also focusing on reducing debt and improving cash flow:
✔ Total Debt – ₹1,200 crore as of December 31, 2024.
✔ Debt Reduction Strategy – Plans to lower working capital days to 180-200 over the next 18 months, improving cash flow and financial stability.
Despite a debt-to-equity ratio of 0.48, the company’s long-term growth prospects and improving cash flow position mitigate financial risks.
Key Financial Ratios & Stock Valuation
| Metrics | Value |
|---|---|
| Market Cap | ₹8,664 Cr. |
| Stock P/E | 109 |
| ROCE | 8.89% |
| ROE | 4.91% |
| Price to Book Value | 3.11 |
| Debt to Equity | 0.48 |
| Intrinsic Value | ₹339 |
| PEG Ratio | 5.27 |
| DMA 200 | ₹749 |
| Free Cash Flow (3Yrs) | ₹-730 Cr. |
| Return on Assets | 3.91% |
Although the high P/E ratio of 109 suggests the stock is expensive, strong growth potential and expansion plans justify premium valuations.
Should You Invest in Anupam Rasayan?
Anupam Rasayan is a high-growth specialty chemicals stock with strong revenue guidance, expansion plans, and a robust order book. However, investors must consider:
✔ Pros:
✔ Strong revenue and earnings growth outlook.
✔ Expanding global presence (especially in Japan).
✔ New product launches driving future demand.
✔ Green energy initiatives enhancing sustainability.
❌ Cons:
❌ High valuation compared to industry peers.
❌ Short-term revenue decline in 9M FY25.
❌ Moderate return ratios (ROCE: 8.89%, ROE: 4.91%).
Final Verdict: A strong long-term investment for growth-focused investors, but short-term volatility may persist.
Q&A: Key Takeaways from the Article
Q1: Why is Anupam Rasayan expecting 30-35% revenue growth in FY26?
✅ Strong demand in Pharma and Polymer segments, a robust order book of ₹10,700 crore, and new product launches.
Q2: How did the company perform in Q3 FY25?
✅ Revenue grew by 32% YoY to ₹390 crore, EBITDA rose 48%, and PAT jumped 108% YoY.
Q3: What are the key growth drivers for the company?
✅ 17+ new molecules launched in FY24, 6+ more planned for FY25, Tanfac acquisition, and expansion in Japan.
Q4: How is Anupam Rasayan managing its debt?
✅ The company’s total debt is ₹1,200 crore, with plans to reduce working capital days to 180-200 in the next 18 months.
Q5: Is the stock overvalued?
✅ With a P/E of 109, it is trading at a premium, but growth prospects justify higher valuations.
Conclusion
Anupam Rasayan India Ltd is a high-potential chemical stock with strong growth prospects, solid order visibility, and aggressive expansion plans. While short-term volatility may persist, long-term investors seeking high growth should keep this stock on their watchlist.
Would you consider investing in Anupam Rasayan after this analysis? Let us know your thoughts!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.