Target: ₹780
CMP: ₹670.50
Incorporated in 2003, Anupam Rasayan India Ltd (ARIL) has long-term contracts with its large MNC customers and it is the primary or sole supplier for majority of the products under contracts which provides a stable revenue growth.
ARIL has received healthy orders worth ₹2,620 crore in FY22 which would be executed in next four-five years. New product innovation for new and existing customers is expected to generate 20-25 per cent growth in overall revenue, whereas it expects 10-15 per cent growth from existing molecules. The pharma segment comes with a huge potential in CRAMS/CSM industry. Agro-chemicals segment remains the major contributor to its overall revenue.
The gradual shift in pricing mechanism from annual to semi-annual pricing contracts is expected to ease the working capital requirement in the near term. Commissioning of solar and wind power plant with a capacity of 10.5 MW in June 2021 and 12.5 MW in April 2022 are expected to save costs worth about ₹20-22 crore on an annual basis.
It is growing its business through the organic route with more focus on advancement of R&D in new molecules and chemistries to serve existing and new clients better. It is also looking to facilitate backward integration and foray into niche products through inorganic growth opportunities to remain competitive in the market.