Anupam Rasayan shares rise 3% as firm inks letter of intent worth Rs 507 cr with a Japanese firm

Shares of Anupam Rasayan India Ltd rose over 3% today, after the firm inked a signed a Letter of Intent with a leading Japanese Multi-National Company (MNC). Anupam Rasayan shares climbed 3.23% to Rs 1039.70 against the previous close of Rs 1007.10 on BSE. Market cap of the firm climbed to Rs 10,806.80 crore in Tuesday's session. Total 2.12 lakh shares changed hands amounting to a turnover of Rs 21.54 crore on BSE.

The stock of the specialty chemicals firm hit its yearly low of Rs 570 on February 2, 2023 and a 52 week high of Rs 1249.75 on May 29, 2023.

However, the stock has gained 53% in one year and risen 45.42% per cent since the beginning of this year. Anupam Rasayan stock has a one-year beta of 0.4, indicating very low volatility during the period.

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In terms of technicals, the relative strength index (RSI) of Anupam Rasayan stands at 53, signaling it's trading neither in the oversold nor in the overbought zone. Anupam Rasayan shares are trading lower than the 5 day, 10 day, 20 day but higher than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The Letter of Intent pertains to supply of a new age polymer intermediate. Revenue from the Letter of Intent is likely to be $61 million or Rs 507 crore and the supply will commence from calendar year 2024.

The product will be manufactured in its existing and new multipurpose manufacturing facilities.

"This molecule will be utilised as an intermediate for thermoplastic polymers, which find uses in structural materials in aerospace industry, semiconductor process material, electrical & electronic devices, and high-performance industrial machinery," said Anand Desai, Anupam Rasayan's Managing Director.

Desai further said that the company is fully backward integrated for this molecule. With this LoI, the total LoIs signed by the company now stand at Rs 8,000 crore.

Anupam Rasayan is engaged in manufacturing of chemicals, which are sold in local market as well as exported to other countries.