This smallcap has surged 18% on healthy outlook; zoomed 79% in 3 months

Shares of the Anup Engineering hit a record high of Rs 3,237.95, as they rallied 18% on the NSE in Tuesday's intra-day and zoomed 137% thus far in calendar year 2024.

Anup Engineering share price: Shares of the Anup Engineering hit a record high of Rs 3,237.95, as the scrip rallied 18 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade on expectation of strong growth outlook. 

 

In three months, the stock of SmallCap has surged 79 per cent. Thus far in the calendar year 2024, the market price of a leading provider of process equipment for various industries has zoomed 137 per cent, as compared to 11 per cent rise in the Nifty50.

 

The Anup Engineering caters to wide range of process industries including oil & gas, petrochemicals, LNG, hydrogen, fertilisers, chemicals/ pharmaceuticals, power, water, paper & pulp and aerospace with its extensive product range of heat exchangers, reactors, pressure vessels, columns & towers, industrial centrifuges & formed components.

 

 

Until October 26, 2024, Anup Engineering’s order book stood at Rs 932 crore. The company continues to see strong traction in the exports segment, which constitutes 68 per cent of order backlog.

 

With strong enquiry pipeline in exports, recent capacity expansions and focus on new products, management is confident of growing revenues at 25-30 per cent annually over the next 2-3 years, according to domestic brokerage firm ICICI Securities.

 

In the September quarter of FY25 (Q2FY25), the company’s operational performance remained steady during the quarter led by solid growth in exports. 

 

Anup’s revenue increased 38.1 per cent year-on-year (YoY) to Rs 193.1 crore. Exports revenue (54 per cent of revenues) increased substantially to Rs 104.6 crore (versus Rs 28.4 crore in Q2FY24) while domestic revenue (46 per cent of revenue) declined by 19 per cent Y-o-Y. 

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin stood at 22.4 per cent (flattish Y-o-Y & Q-o-Q).  Profit after tax (PAT) was up 49.8 per cent Y-o-Y to Rs 32.5 crore.

 

The goal in India to double the refining capacity by 2030 and also be a leader in petrochemicals will manifest into good projects hitting the ground. Climate change is a serious concern globally, and the shift to low carbon emitting energy mix will be the way forward. Hydrogen forms a very important part of this new energy mix, and it offers a big opportunity for manufacturers like Anup Engineering, both for Blue hydrogen to start with and Green hydrogen in the near future. 

 

Announcement of new coal/ lignite gasification plants also provides new opportunities in this segment. Moreover, GDP growth aspirations announced by developing countries meant Oil & Gas and Petroleum products will continue to be an important part of their energy mix driving the growth, in addition to the focus on cleaner energy mix, the company said.

 

The growth in the specialty chemical segment also means higher possibilities in the exotic/ finer grade material segment, which means higher realisation over the same capacity. The commissioning of our Phase-1 expansion of the company’s new facility at Kheda - Gujarat, provides the company with an opportunity to improve market share, Anup Engineering said in its FY24 annual report.

 

The acquisition of Mabel Engineers, a manufacturing plant in Tamil Nadu, which adds products like Silos, Storage Tanks and Vessels provides a wider bandwidth to address the company’s customer requirements. This also helps the company spread geographically down south of India to address our customer requirements in the SEFE market, it added.

 

Meanwhile, on August 30, The Anup Engineering and Graham Corporation (USA), a global business specialising in critical equipment, announced a strategic partnership through a manufacturing and supply agreement, for India and International Business. This agreement will enable Anup Engineering to manufacture and supply a wide range of critical products for and on behalf of Graham Corporation for their global project solutions.