KR Choksey's research report on Anupam Rasayan India
Anupam Rasayan’s revenue missed our estimates significantly due to weak demand in Agrochemical segment. EBITDA and Adj. PAT missed our estimates significantly due to operating deleverage and lower than expected other income. We have revised our FY26E EPS estimates down to INR 20.0 (previously: INR 22.5) due to elevated inventory levels which will increase working capital intensity and affect cash flow efficiency, continued weak demand in Agrochemical industry, and challenges arising from global economic uncertainties and geopolitical tensions.
Outlook
Currently, the stock is trading at a PE multiple of 54.3x/36.6x based on FY25E/FY26E EPS, respectively. We assign a PE multiple of 36.8x to FY26E EPS and arrive at a target price of INR735 (previously: INR 810). We downgrade our rating to “HOLD” from “ACCUMULATE” due to deferment of certain orders to H2FY25E, and delay in recovery of Agrochemical segment.
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