Anupam Rasayan eyes 20% growth, stock surges 72% since IPO

Specialty chemicals manufacturer Anupam Rasayan India, which has delivered handsome returns to investors since listing on the stock exchanges on March 24, 2021, is gearing up for exponential growth. Gopal Agrawal, CEO of the company, has expressed confidence in achieving a 15-20% growth with similar margins for the current financial year, supported by a robust order book. Data showed that shares of the company have already soared nearly 72 per cent to Rs 954.15 on November 28, 2023, against the issue price of Rs 555. 

Agrawal is aiming to position the company as globally competitive and future ready. He said, “My goal is to serve as a catalyst for overall growth of the company. We are strategically positioning Anupam Rasayan to embrace global competitiveness, paving the way for exponential growth.”

The company's growth ambitions come at a time when the Indian economy is showcasing resilience amid a challenging global economic landscape marked by volatility, slowdown, and heightened inflation. Consolidated gross sales of the company grew around 45 per cent annually to Rs 1,601.91 crore in FY23 from Rs 528.88 crore in FY20. On the other hand, consolidated net profit increased 50 per cent CAGR to Rs 180.85 crore from Rs 53.21 crore during the same period.

Anupam Rasayan has not only weathered these challenges but also demonstrated significant resilience and achieved substantial growth. Consider this: The company's consolidated H1FY24 revenue reached Rs 794 crore, reflecting a robust year-over-year growth of nearly 11 per cent. Despite external challenges, the focus on niche products, innovation, and contractual demand has mitigated exposure to market volatilities, ensuring higher revenue visibility crucial for sustaining growth, Agrawal told BT. At present, the current market capitalisation of the company is hovering around Rs 10,200 crore.

Anupam Rasayan has also stepped up its environmental initiatives, signing three MOUs with the Government of Gujarat for afforestation across 150 hectares. These initiatives, aimed at planting over 1,66,000 trees in desolate areas, align with the company's commitment to achieving net carbon neutrality in energy consumption by 2027.

In addition to environmental initiatives, the company announced the disclosure of scope 3 greenhouse gas emission data in its latest Environmental, Social, and Governance (ESG) report. This move sets Anupam Rasayan apart as one of the few chemical companies in the industry to provide such transparency, claims Agrawal. 

Gopal Agrawal's strategic approach is further evident in the company's business updates, including the launch of three molecules in Q2 FY '24, bringing the total to five for the financial year. “With a product pipeline comprising five upcoming molecules, Anupam Rasayan reinforces its commitment to innovation,” said Agrawal.

The financial overview revealed Q2 FY '24 consolidated total revenue of Rs 396 crores, posting a year-on-year growth of 3 per cent. H1 FY '24 total revenue amounted to Rs 794 crores, reflecting an impressive year-on-year growth of 11 per cent. Despite an increase in debtors' in H1 FY '24, normalization is anticipated in the next two quarters, supported by positive indicators from October collections, the company said in the investor call after its latest quarter results.

Anupam Rasayan maintains its margins, with cash equivalents standing at Rs 404 crores as of September 30, 2023. The recent announcement of a capital infusion of Rs 550 crores through a preferential issue, with promoter participation, is expected to primarily retire majority of the long-term debt, decreasing interest costs, and making it earnings per share (EPS) accretive.

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