Anupam Rasayan: A Closer Look at Growth and Potential
In a bustling industrial town in Gujarat, the Anupam Rasayan plants stand tall, a testament to the company’s commitment to innovation and excellence. Recently, our team from Emkay Global had the privilege of visiting these plants, located in Jhagadia and Surat, to gain insights into the company’s operations and future prospects. Our meeting with Deputy CFO Vishal Thakkar shed light on the intricate workings of this chemical manufacturer, revealing a story of growth and promise.
Diving into the details, we discovered that Anupam Rasayan’s plants in Jhagadia house units 4 and 5, while those in Surat boast units 1, 2, 3, and 6. These multifaceted facilities are equipped with state-of-the-art technology, enabling them to tackle a diverse range of chemical reactions essential for various industries. With a significant portion of the capital expenditure already completed, the company is gearing up for the commissioning of unit 4 in the coming months, paving the way for future growth.
Looking ahead, the management envisions a peak revenue potential of ₹3,000 crore, leveraging its current gross block of approximately ₹2,000 crore. Despite challenges in certain sectors, such as agchem, Anupam Rasayan remains optimistic about its prospects in the pharmaceutical and polymer segments. Moreover, strategic partnerships in the battery, aviation, and electronics industries signal the company’s proactive approach to expanding its horizons.
One of the key focus areas for Anupam Rasayan is the optimization of working capital, with the management aiming to reduce it to an ideal range of 180-200 days. Currently standing at around 600 days as of December 2024, the working capital presents an opportunity for improvement, which could positively impact the company’s financial health and operational efficiency.
Steady Growth and Financial Outlook
Looking into the financial forecast, Anupam Rasayan targets a robust revenue growth of 35-40% in FY26, supported by an EBITDA margin expected to stabilize at 26-28%. These projections underscore the company’s strategic vision and operational prowess, positioning it for sustained success in a competitive market landscape. Emkay Global maintains an optimistic stance on Anupam Rasayan, with a revised target price of ₹800, reflecting a 7% increase to account for the Tanfac valuation.
In conclusion, our journey through the Anupam Rasayan plants offered a glimpse into the company’s past achievements and future aspirations. From cutting-edge technology to strategic partnerships, Anupam Rasayan is poised to make a mark in the chemical industry, driven by a commitment to excellence and innovation. As the company charts its course towards growth and sustainability, investors and industry observers alike are keeping a close watch on this dynamic player in the market.
The story of Anupam Rasayan is not just a tale of numbers and figures but a narrative of resilience, vision, and ambition. As the company navigates through challenges and opportunities, one thing remains clear – the future holds immense potential for this homegrown industry leader. With a solid foundation and a clear roadmap for growth, Anupam Rasayan is indeed a name to watch in the ever-evolving landscape of the chemical industry.
