Anupam Rasayan hits 6-month high; zooms 40% in 5 weeks on strong outlook

Analysts are positive on the company's long term growth trajectory on the back of a robust product launch pipeline especially in high value fluorination chemistry

Shares of Anupam Rasayan India (ARIL) rallied 7 per cent to hit a six-month high of Rs 859 on the BSE in Wednesday’s intra-day trade. In the past two trading days, the stock of the specialty chemicals company has soared 15 per cent. It was quoting at its highest level since September 12, 2022. In comparison, the S&P BSE Sensex was up 0.17 per cent at 58,172, at 01:36 pm.

ARIL is one of the leading companies engaged in the custom synthesis (CSM) and manufacturing of specialty chemicals in India. The speciality chemicals major has two verticals, life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, other specialty chemicals comprising specialty pigment and dyes, and polymer additives.

In the past five weeks, the stock price of ARIL has zoomed 40 per cent on expectations of strong growth in coming quarters and years. In the past one month, it has rallied 35 per cent as against a 2.6 per cent decline in the S&P BSE Sensex.

The company has a strong pipeline of products to launch in coming quarters. The management said the company has specifically seen strong interest from various customers on the fluorination side.

“Overall, our strong pipeline of products, availability of the capacity, advance stage discussion with various clients along with capex, which is moving ahead of the plan makes me confident of delivering strong and sustainable growth in coming quarters and years,” Anand Desai, Managing Director of Anupam Rasayan had said while announcing December quarter results on January 27.

ARIL is focusing on growing its product portfolio in fluorination chemistry with a plan to launch 14 molecules over the next 12-18 months. Accordingly, the company expects to launch 5 molecules in Q4FY23 itself. Besides this, the company has a strong pipeline of LOI/Contracts worth Rs 2,620 crore, which provide revenue visibility for the next 5 years, said analysts at KRChoksey Shares and Securities. 

Unlike the other chemical companies, the company is benefitting from the European energy crisis as it has signed two new contracts worth Rs 100 crore with an European agrochemical company. The company is witnessing a change in the trend as Indian chemical players are being selected as preferred manufacturing partners for strategic products presently being manufactured in Europe.

“ARIL has delivered a stable performance despite macro challenges and the shutdown of one of the units. We are positive on the company’s long term growth trajectory on the back of a robust product launch pipeline especially in high value fluorination chemistry,” KRChoksey Shares and Securities said. The stock is, however, trading above its target price of Rs 839 per share.