Global brokerage firm Jefferies has maintained an 'Underperform' rating on Anupam Rasayan India Ltd., with a price target of ₹520 per share, implying a potential downside of about 45% from the last closing level.
The brokerage said that the stock is trading close to its historical average, implying an unfavorable risk-reward profile.
Jefferies wrote in its note that Anupam Rasayan's revenue, EBITDA, and profit exceeded its estimates, driven by signs of recovery in the agrochemicals segment and increasing traction in new pharmaceutical molecules.
However, working capital deteriorated substantially, despite a decline in revenue in financial year 2025, resulting in negative operating cash flow and a rise in net debt.
Anupam Rasayan has built a Letter of Intent (LOI) pipeline worth ₹14,600 crore, of which ₹4,600 crore has been converted into firm contracts. Some of these contracts are expected to ramp up in FY26.
The company has signed a LOI with battery player Elementium, which it is optimistic will scale rapidly from FY27 onwards.
The management has guided for 25–30% revenue growth in FY26.
Jefferies is factoring in a 17% compound annual growth rate (CAGR) in consolidated revenue and a 39% CAGR in consolidated profit after tax (PAT) over FY25–FY27, supported by a low base.
According to the brokerage, Anupam Rasayan is currently trading at 58.3 times its one-year forward price-to-earnings (PE) ratio, the highest among Jefferies' chemical sector coverage and more than three standard deviations above its historical average.
Shares of Anupam Rasayan India Ltd. settled 0.78% lower on Friday at ₹949.70. The stock has gained over 30% so far in 2025.
The brokerage said that the stock is trading close to its historical average, implying an unfavorable risk-reward profile.
Jefferies wrote in its note that Anupam Rasayan's revenue, EBITDA, and profit exceeded its estimates, driven by signs of recovery in the agrochemicals segment and increasing traction in new pharmaceutical molecules.
However, working capital deteriorated substantially, despite a decline in revenue in financial year 2025, resulting in negative operating cash flow and a rise in net debt.
Anupam Rasayan has built a Letter of Intent (LOI) pipeline worth ₹14,600 crore, of which ₹4,600 crore has been converted into firm contracts. Some of these contracts are expected to ramp up in FY26.
The company has signed a LOI with battery player Elementium, which it is optimistic will scale rapidly from FY27 onwards.
The management has guided for 25–30% revenue growth in FY26.
Jefferies is factoring in a 17% compound annual growth rate (CAGR) in consolidated revenue and a 39% CAGR in consolidated profit after tax (PAT) over FY25–FY27, supported by a low base.
According to the brokerage, Anupam Rasayan is currently trading at 58.3 times its one-year forward price-to-earnings (PE) ratio, the highest among Jefferies' chemical sector coverage and more than three standard deviations above its historical average.
Shares of Anupam Rasayan India Ltd. settled 0.78% lower on Friday at ₹949.70. The stock has gained over 30% so far in 2025.
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