Anupam Rasayan’s Japan Order Worth Rs 2,200 Crore Drives 6% Surge in Shares
Anupam Rasayan India witnessed a significant surge of 6% in its share prices during the early trading session on Wednesday. The surge followed the announcement of a letter of intent (LoI) signed by the company with a prominent Japanese speciality chemical firm. The news was disclosed through an official filing with the stock exchange after the market closed on Tuesday.
According to a media release, Anupam Rasayan, a leading player in the specialty chemical industry, has secured a letter of intent (LoI) valued at $265 million (approximately Rs 2,186 crores) for the next five years. This agreement entails the supply of a new age patented life science active ingredient to the Japanese speciality chemical company.
The company stated, “The product will undergo a validation phase lasting eighteen months, and upon successful validation, the supply will commence from CY2025. The manufacturing of this product will take place in our existing multipurpose manufacturing facilities.”
Following this announcement, Anupam Rasayan India’s shares surged by 6% to reach Rs 1,150 on Wednesday, although they later experienced a partial decline. The company currently commands a total market capitalization of Rs 12,000 crore. On Tuesday, the stock had settled at Rs 1,086.05.
Anupam Rasayan’s shares have risen by 110% from their 52-week low of Rs 547, recorded a year ago. In 2023, the stock has exhibited a growth of approximately 65%. Since its listing in March 2021, the stock has yielded a return of over 100% from its issue price of Rs 555.
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Established in 1984, Anupam Rasayan India specializes in the custom synthesis (CSM) and manufacturing of specialty chemicals within India. The company operates in two verticals: life science-related specialty chemicals, which includes products related to agrochemicals, personal care, and pharmaceuticals; and other specialty chemicals, comprising specialty pigments and dyes, as well as polymer additives.
Domestic brokerage firms foresee further upside potential in Anupam Rasayan’s stock. KR Choksey has assigned a ‘buy’ rating with a target price of Rs 1,326, suggesting a 22% upside potential from the previous closing price. Nuvama Institutional Equities has also rated the stock as a buy with a target price of Rs 1,378, as mentioned in its May 2023 report.
About Anupam Rasayan:
Anupam Rasayan India Limited operates in the industrial chemicals manufacturing sector, specializing in the production of various types of chemicals. The company’s core activities include custom synthesis and manufacturing of specialty chemicals in the fields of life sciences and other specialized areas. Their expertise lies in employing advanced technologies and implementing multi-step synthesis processes to cater to the needs of both Indian and international clients.
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