Multibagger stock rallies 7% after JM's 'Buy' rating; here's share price target

Multibagger stock Acutaas Chemicals Ltd surged 7 per cent in Thursday's trade as JM Financial resumed coverage with a 'Buy' from 'Add' earlier, suggesting a potential 17 per cent upside for the stock. JM Financial, which suggested a price target of Rs 3,800 on Acutaas Chemicals, expects the company to deliver sustained earnings growth driven by a strong 28 per cent growth in the CDMO business over FY26–30, compounded annually, and incremental contribution from newer businesses such as electrolyte additives, semiconductors and electronic chemicals.

The multibagger stock rose 6.73 per cent to hit a high Rs 3,451.05 apiece, taking its one-year rise to Rs 136.51 apiece.
 
JM said Acutaas is transitioning its Specialty Chemicals portfolio away from base products such as methyl paraben and salicylic acid towards higher-growth, high-value applications such as electrolyte additives, semiconductor chemicals and electronic chemicals.

"Electrolyte additives could address a 150,000 MTPA global market by CY30E. Acutaas has already contracted its VC/FEC capacities, which, combined with two more additives, is expected to generate Rs 400 crore in revenue by FY30E. In semiconductors, BFC and Indichem provide exposure to high-margin photoresist chemicals with revenue expected to rise in tandem with ramp up of the Korean facility," JM said.

Despite the gradual phase-out of low margin specialty chemicals business, JM expects overall the segment revenue to increase from Rs 170 crore in FY26 to Rs 730 crore by FY30, implying 45 per cent CAGR), largely driven by electrolyte additives and semiconductor chemicals with a better margin profile.

JM Financial said Acutaas has four new CDMO molecules in its portfolio across cardiovascular and oncology, each with revenue potential of Rs 50-100 crore. It expects revenue from these four molecules to scale up to Rs 320 crore by FY30.

"In legacy pharma intermediates, Pfizer’s Apixaban is expected to go off-patent in November 2026. Assuming Pfizer retains 20 per cent market share, we estimate an addressable opportunity of Rs 440 crore for Acutaas. With the portfolio rejig largely complete, Apixaban intermediates sales should drive recovery in the legacy pharma business, which we estimate would grow at a 12 per cent CAGR over FY26–30E to Rs 880 crore," JM said.