Anupam Rasayan is an attractive investment opportunity with a target price of ₹800 and a current market price (CMP) of ₹788.30. During a recent visit to the company’s plants in Jhagadia and Surat, Gujarat, we met with Deputy CFO Vishal Thakkar. The plants in Jhagadia consist of units 4 & 5, while the ones in Surat include units 1, 2, 3, and 6. These plants are multi-purpose in nature, capable of handling various reactions required for different application segments.
Most of the company’s capital expenditure has been completed, with unit 4 expected to be operational in a couple of months and no significant capex planned for FY26-27. The management foresees reaching a peak revenue potential of ₹3,000 crore from the current gross block of approximately ₹2,000 crore. The pharmaceutical and polymer segments are performing well, with signs of recovery in the agrochemical sector. Anupam has also secured Letters of Intent (LoIs) in the battery, aviation, and electronics industries.
The management is focused on reducing working capital to an ideal range of 180-200 days, as the current working capital stands at an elevated level of around 600 days as of December 2024. The company aims for a 35-40% revenue growth in FY26, with an EBITDA margin stabilizing at 26-28%. We reiterate our Add rating on Anupam and increase our Sum-of-the-Parts (SoTP) based target price by approximately 7% to ₹800 to incorporate the valuation of Tanfac.
This information was published on March 11, 2025.
