- While the company raised FY23-25ii EBITDA by 4-5% due to higher margins, EPS estimates fall by 0-9% as we assume a higher tax rate. Our TP, rolled forward to Sep-23, increases to Rs990 (30x Jun-24 EPS)
- Anupam delivered a stellar operating performance in 1Q, with revenue and EBITDA beating estimates. However, an Rs165m forex loss and a higher than estimated ETR caused PAT to be in-line
- Working capital / inventory days have been a cause for concern. However, Management are confident of reducing the burden in FY24, as the pricing mechanism clause starts getting revised to 6 months
- Orders and LOIs in hand, worth Rs26.2bn, offer fairly good growth visibility. Growth beyond that is driven by the foray into fluorination, the revenue potential of which is ~US$220-260m
- Overall, ARIL remains focussed on growth. Our estimates assume PAT CAGR of ~35% from FY22 to FY25. However, elevated working capital levels are keeping the RoE subdued
- Maintain 'BUY' with a revised target price of INR 990/share
Shares of Anupam Rasayan India Limited was last trading in BSE at Rs. 756.55 as compared to the previous close of Rs. 784.95. The total number of shares traded during the day was 2332 in over 489 trades.
The stock hit an intraday high of Rs. 797.00 and intraday low of 750.80. The net turnover during the day was Rs. 1788883.00.
Source : Equity Bulls