Target: ₹800
CMP: ₹788.30
We visited Anupam Rasayan’s plants based in Jhagadia and Surat, Gujarat, and also met Deputy CFO Vishal Thakkar. The plant at Jhagadia has units 4 & 5 and that in Surat has units 1, 2, 3, and 6. Most of the company’s plants are multi-purpose in nature with respect to reaction capabilities required for any application segment. A large part of the capex has been completed, with unit 4 set to commission in a couple of months and no large capex planned for FY26-27.
The management expects peak revenue potential of ₹3,000 crore from the current gross block of about ₹2,000 crore. The pharma and polymer segments continue to fare well, with agchem recovery in sight. Anupam has signed a couple of LoIs in the battery, aviation, and electronics sectors. The management has reiterated its focus on reducing working capital to an ideal range of 180-200 days. WC stands elevated at around 600 days, as of December 2024.
It targets 35-40 per cent revenue growth in FY26, with EBITDA margin stabilising at about 26-28 per cent. We maintain Add on Anupam and revise up our SoTP-based TP by about 7 per cent to ₹800, to factor in the Tanfac valuation.
