Leading Specialty Chemicals Firm Secures Rs 922 Crore International Deal; FIIs and DIIs increased their stake in the last Quarter!

With a PE ratio of 109x, the company trades at a premium compared to the industry PE of 29.5x. The company has ROCE of 8.89 per cent and ROE of 4.91 per cent.

Anupam Rasayan India Ltd., a prominent player in the custom synthesis and specialty chemicals sector, has announced a significant development with the signing of a 10-year letter of intent (LOI) valued at Rs 106 million (approximately Rs 922 crores). This agreement is with a leading Korean multinational corporation, renowned for its expertise in specialty chemicals. The deal involves the supply of a high-performance niche chemical, expected to commence from the financial year 2025-26. This partnership underlines Anupam Rasayan's robust R&D capabilities and its strategic expansion into high-growth global markets, particularly in South Korea, which is recognized as an advanced manufacturing hub. The specialty chemical involved in this agreement finds applications in the aviation and electronics sectors, highlighting the company's ability to provide advanced chemical solutions with reliable supply chain management.

In the Quarterly Results of Dec-24, the company reported revenue of Rs 390.14 crore, reflecting a growth of 32.02 per cent year-on-year and 32.72 per cent quarter-on-quarter. Net profit stood at Rs 28.19 crore, marking an increase of 53.12 per cent year-on-year and 69.11 per cent quarter-on-quarter. The net profit margin for Dec-24 was 7.23 per cent, compared to 5.67 per cent in Sep-24 and 6.23 per cent in Dec-23.

For the financial year FY24, revenue was Rs 1,475.07 crore, showing a decline of 7.92 per cent compared to Rs 1,601.91 crore in FY23. Net profit for FY24 stood at Rs 79.69 crore, down by 33.66 per cent from Rs 137.19 crore in FY23. The net profit margin for FY24 was 9.30 per cent, compared to 12.91 per cent in FY23.

Anupam Rasayan India Ltd. is a key player in India's specialty chemicals industry, engaged in custom synthesis and manufacturing. The company's stock is currently priced at Rs 787, with a market capitalization of Rs 8,578.49 crores. Over the past year, the stock has seen a decline of 16.88 per cent, and a three-year return stands at -11.06 per cent. The company operates six manufacturing facilities in Gujarat, with an installed capacity of about 30,000 MT. Its product portfolio includes life science-related specialty chemicals and other specialty chemicals, catering to a diverse clientele of over 71 domestic and international customers, including 31 multinational companies. The PE ratio of the stock is 62.38, reflecting the company's current earnings relative to its share price.

With a PE ratio of 109x, the company trades at a premium compared to the industry PE of 29.5x. The company has ROCE of 8.89 per cent and ROE of 4.91 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.