On paper, Anupam Rasayan looks like the dream combo of India’s favorite themes — chemical exports, China+1, clean tech, and Adani-adjacent industrial vibes.
But under the microscope? You might just find a bloated balance sheet, falling ROEs, and a PE ratio that would make even Apple blush.
Let’s dissect the compound.
🧬 Company Snapshot
- 🧪 Business: Niche specialty chemicals manufacturer
- 🧬 Core Segments (FY24):
- Agrochemicals (65%) – insecticides, herbicides, fungicides
- Personal Care (17%) – UV filters, antibacterial agents
- Pharma Intermediates (9%) – APIs & key starting materials
- 🌍 Geography: Significant export exposure, including Japan, EU, and USA
- 🤝 New Projects:
- 3-year deal with Japanese MNC
- 5-year LOI for lithium battery electrolyte salt ⚡
📈 Stock Performance
| Duration | Price (₹) | Return (%) |
|---|---|---|
| 1 Year | 787 → 1,117 | +42% 🚀 |
| 3 Year | ~900 → 1,117 | +23% 🙂 |
| From IPO (2021 at ₹555) | ₹555 → ₹1,117 | +101% 🎯 |
🪫 But: The journey hasn’t exactly been smooth. More like a lab report with red markings all over. Let’s look at why.
💰 5-Year Financials
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|
| FY21 | 811 | 70 | 24% | 10% | 7.0% |
| FY22 | 1,074 | 152 | 28% | 11% | 15.2% |
| FY23 | 1,602 | 217 | 27% | 13% | 16.8% |
| FY24 | 1,475 | 167 | 26% | 9% | 11.7% |
| FY25 | 1,437 | 160 | 28% | 7% | 8.5% |
📉 Edu Take:
- Revenue peaked in FY23, declined in FY24 & FY25 ❌
- Margins stable, but PAT falling = not a good formula
- ROE dropped from 16.8% to 8.5% — despite growing debt
🧾 Valuation & Metrics (June 2025)
| Metric | Value |
|---|---|
| CMP | ₹1,117 |
| Market Cap | ₹12,284 Cr |
| P/E Ratio | 132x 😵 |
| Book Value | ₹259 |
| P/B Ratio | 4.31x |
| Dividend Yield | 0.11% |
| ROCE | 7.3% |
| ROE | 3.3% (TTM) |
| Promoter Holding | 61.19% (Stable) |
| Debtors Days | 186 days ⏱️ |
📉 EduVerdict: You’re paying 130+ times earnings for a business growing in reverse, with below-FD ROE. Do you like pain?
🧠 EduAnalysis: Let’s Break Down the Molecule
🧪 What’s Working:
- 🧬 Export-driven niche chem portfolio
- 🤝 Long-term contracts with MNCs (Japan, US)
- 🔋 New bets on battery salts & clean tech
- 🧫 90%+ B2B recurring revenue = stickier clients
- 🏗️ Capex almost done – FY26 could see better leverage
🧨 What’s Not:
- 🧻 Working capital mess – 186 debtor days, 876 inventory days
- 🧾 ROE halved in 2 years
- 📉 Revenue declined 3 years CAGR: -15%
- 📊 Stock is pricing in FY26 already – no room for execution slip
- 📉 Other specialty chem stocks trade at lower P/E with higher ROCE
🧪 Peer Comparison
| Company | P/E | ROE | ROCE | Comment |
|---|---|---|---|---|
| Anupam Rasayan | 132x | 8.5% | 7.3% | Valuation stress test |
| Vinati Organics | 47x | 20.5% | 20.6% | High-margin, proven biz |
| Deepak Nitrite | 37x | 21% | 16.6% | Commodity + spec chem mix |
| Navin Fluorine | 78x | 18% | 11.6% | Clean balance sheet |
| Atul Ltd | 42x | 12% | 12.7% | Old-school stable |
🎯 EduCall: You could literally buy 2 Vinatis and 1 Deepak for the price of one Anupam Rasayan. 🤷♂️
🧾 Shareholding Trends
| Category | FY22 | FY25 |
|---|---|---|
| Promoters | 65.2% | 61.2% 🔻 |
| FIIs | 4.9% | 6.5% ✅ |
| DIIs | 4.4% | 2.2% 🔻 |
| Public | 25.4% | 30.1% 🔼 |
📉 Warning Sign: Promoters slowly selling. DIIs losing interest.
🧠 EduCrystal Ball: FY26 Guidance
Company says:
“Expect 25–30% revenue growth in FY26, led by pharma & polymer chemistry.”
Edu says:
“Cool. But we’ve heard this before.”
If they deliver, maybe the stock will justify its valuation. But if they don’t… expect acid reflux for investors.
🧾 TL;DR Summary
| Factor | Verdict |
|---|---|
| Margins | Stable ✅ |
| Growth | Weak ⛔ |
| ROE/ROCE Trend | Falling 📉 |
| Valuation | Overstretched 🤯 |
| EduVerdict | Mirage for now 🚫 |
🗣️ Final Take: Multibagger, Meh, or Mirage?
📉 Verdict: Mirage with Hopeful Catalysts
It could bounce back — FY26 may surprise. But right now, this is a case of chemical romance priced like a biotech moonshot.
Unless you’re a long-term bull with nerves of tungsten, this stock needs to correct or prove before it deserves your SIP.
🎯 Buy range? Below ₹850
⏳ Watchlist status? Yes.
🚫 Buy now? Not unless you’re high on lithium salts.
✍️ Written by Prashant | 📅 June 14, 2025
Tags: Anupam Rasayan, Specialty Chemicals, Agrochemicals, Battery Materials, Chemical Stocks, Nifty 500, EduInvesting, Chemical Exporters, ROE Stocks, High PE Stocks
