Equity Analysis /
India

IN : Anupam Rasayan India Ltd - Diversified but expensive

    Shaily Ruparelia
    Satish Kumar
    CGS-CIMB
    16 April 2021
    Published by

    We are negative on Anupam Rasayan due to stagnating sales in key products, unsustainable margins in certain products and low return ratios. We forecast revenue CAGR of 15%, EBITDA CAGR of 12% and PAT CAGR of 27% over FY21-23F. We expect RoE to remain subdued at 7% in FY23F. We value Anupam Rasayan at 20x FY23F EPS to arrive at a TP of Rs379. We initiate coverage on Anupam Rasayan with a Reduce rating.