Buy This Midcap Specialty Chemicals Stock, Target Price Rs 762/Share, Says Nirmal Bang

Stock Outlook & Returns Over the Past 5 Years

The stock of Anupam Rasayan India is currently trading at Rs 651 apiece, up 0.91% from its previous close of Rs 645.15 apiece. The stock since its listing date, 24 March 2021, has given 23.6% positive return.

In a week, it gained 1.94% and in 1 month it gained 12.13%. However, it declined by 9.17% in 3 months. It has fallen 22.35% in the past 1 year. Its 52-week low is Rs 546.75 apiece and 52-week high is Rs 936.55 apiece, respectively.

Buy with a target price of Rs 762/share

Nirmal Bang said, "In this report, we have summarized key takeaways (KTAs) from the zoom meeting with the management of small cap CSM company Anupam Rasayan India Ltd (ARIL) on February 14, 2023. The underlying theme was: (a) The CSM pie in Agrochem, Pharma and Specialty Chemicals is large enough and each CSM provider has its own niche with customers.

It added, "This is based on the expertise of each CSM player (including ARIL) in synthesis, the stage of chemical process in the manufacturing of the final product and consistency in quality/delivery at a reasonable price (b) ARIL has the potential to earn revenue of Rs17- 18bn on exiting assets, driven by MPP flexibility on type of chemicals, the synthesis and the stage of manufacturing sequence for customers' final molecule (c) ARIL sees growth from increased wallet share and higher volume from existing customers, new contracts/LOIs and growth in high-value fluorination derivatives based on Hydrofluoric Acid (HF) and (d) New capex to add capacity and synthesis facilities combined with R&D pipeline and increase in the share of work from innovators."

"We maintain BUY on ARIL with a target price (TP) of Rs762, valuing it at a target PE of 29.8x on Sept'24E EPS; the core business is valued at Rs748 while the value of 25.8% stake in Tanfac Industries (TIL) is Rs14 at CMP (after holding co. discount of 50%)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.