Buy Anupam Rasayan India; target of Rs 941: KR Choksey

KR Choksey's research report on Anupam Rasayan India

Anupam Rasayan India Ltd delivered a strong performance with a turnover of INR 3,066Mn grew by +31.2% yoy and -3.4% qoq (KRC Est. of INR 3,201Mn, down 4%). The revenue growth was supported by rise in both volume and price. It has contributed 95% of revenue from life science segment and 5% from other specialty chemicals. EBITDA grew by 54.7% yoy at INR 938.7Mn (KRC Est. INR 910Mn; up 3.2%); however de-grew by 3.5% qoq basis. EBITDA margin reported stable at 30.6% (+466bps yoy / -5bps qoq) compared to 26% in Q1FY22. The margins were largely stable during Q1FY23 led by efficient operations despite increase in COGS by 9.7% qoq. Net profit reported at INR 397Mn (+23.6% yoy / -14.1% qoq). There was an impact of other income which shows a negative balance of 94.1Mn on account of foreign exchange loss amounting to INR 165.2Mn during the quarter.

Outlook

We assign PE multiple of 35.0x to FY24E EPS of INR 26.9 to revise the target price at INR 941/share (Previous TP: INR 780) and re-iterate our BUY recommendation on the stock with an upside of 18.6% at CMP.