Hold Anupam Rasayan India; target of Rs 694: KR Choksey

KR Choksey's research report on Anupam Rasayan India

Anupam Rasayan’s revenue was largely in-line with our estimates (+1.6%). EBITDA beat our estimates due to lower-than-expected operating expenses. Adj. PAT missed our estimates due to lower-than-expected other income and higher-than-expected depreciation expense. We maintain our FY26E/FY27E EPS estimates at INR 20.0 and INR 30.2 respectively, as we expect strong geographic diversification, and a robust pipeline of new molecules in R&D, which makes the company well-positioned for long-term growth.

Outlook

We roll over our valuation multiple to FY27E and assign a PE multiple of 23.0x to arrive at a target price of INR 694 (previously: INR 719) reflecting the cautious nature of the business because the company still has notable exposure to agrochemicals, which may face challenges due to global uncertainties. Therefore, we maintain our “HOLD” rating.

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