Anupam Rasayan shares jump 6% as company bags Rs 2,200 crore order from Japan

Shares of Anupam Rasayan India surged 6 per cent during the early trading session on Wednesday after the company signed a letter of intent (LoI) with a leading Japanese speciality chemical company. The company informed about the same through an exchange filing on Tuesday after market hours.

The specialty chemical player Anupam Rasayan has signed a letter of intent (LoI) worth revenue of $265 million (Rs 2,186 crores) for the next 5 years with one of the leading Japanese Speciality Chemical companies to supply new age patented life science active ingredient, said the company said in the media release.

"The product will be in the validation phase for the next eighteen months and upon successful validation, the supply will commence from CY2025. This product will be manufactured in our existing multipurpose manufacturing facilities," it added further.

Following the announcement, shares of Anupam Rasayan India surged 6 per cent to Rs 1,150 on Wednesday, before giving up their gains partially. The company was commanding a total market capitalization of Rs 12,000 crore. The scrip had settled at Rs 1,086.05 on Tuesday.

Shares of Anupam Rasayan have surged 110 per cent from its 52-week low at Rs 547 a year ago. The stock has gained about 65 per cent in the year 2023 so far.  Listed in March 2021, the stock has delivered a return of more than 100 per cent from its issue price of Rs 555.

Incorporated in 1984, Anupam Rasayan India is engaged in the custom synthesis (CSM) and manufacturing of specialty chemicals in India. It has two verticals- life science-related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals; and other specialty chemicals comprising specialty pigment and dyes, and polymer additives.

Domestic brokerage firms see more upside in the stock as KR Choksey gave it a 'buy' rating with a target price of Rs 1,326, suggesting an upside potential of 22 per cent from the previous close. Nuvama Institutional Equities also had a buy rating on the counter with a target price of Rs 1,378, in its report launched in May 2023.


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