Anupam Rasayan India Ltd

Basic Materials — Specialty Chemicals · NSE

₹1,174.00+₹13.00 (+1.12%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Anupam Rasayan India Ltd — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Anupam Rasayan India Ltd engages in the custom synthesis and manufacturing of specialty chemicals in India, Europe, Japan, Singapore, China, North America, and internationally. It operates through two segments, Life Science related Specialty Chemicals and Performance Material.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees2,501

Annual revenue₹2,321 Cr

How does it make money?

Turns over ₹2,321 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 2,501 employees supports ₹92.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹92.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 119.4% and earnings to grow about 56.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+119.4%

Est. earnings growth+56.5%

Analysts3

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +49% while net margin moved -37% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect-37%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 14.1% is steady
✗ Profit has declined at 2.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 9.4% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

76.3x

3Y Median

73.2x

40 monthly readings · mean 87.4x · range 43.8x–158.1x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 3y median of 73.2x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 89% above the peer median of 40.4x.

vs. its own history

Fair

73.2x median over 40 months · +4%

vs. sector peers

Expensive

40.4x median of 4 peers · +89%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.0% to 7.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 131% over 3 years, from ₹822 Cr to ₹1,898 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 131% against revenue up 49% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 91% against revenue up 49% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.9% to 23.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 131% against revenue up 49%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 89% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.1% CAGR
Latest reported year was 34.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹221 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹13,366 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

76.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.01x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.38

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

7.3%

Weak

Low return on total capital employed

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

34.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.4%

Falling

Profits are shrinking

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹221 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

29.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.2%

Good

Healthy core-business profitability

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1170.5 / 1204.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,563 Cr	₹1,443 Cr	₹1,402 Cr	₹2,321 Cr	+14.1%
EBITDA	₹421 Cr	₹390 Cr	₹399 Cr	₹536 Cr	+8.4%
EBITDA Margin	26.9%	27.0%	28.5%	23.1%	—
PAT (Net Profit)	₹181 Cr	₹129 Cr	₹93 Cr	₹170 Cr	-2.0%
EPS	₹17.4	₹11.87	₹8.5	₹15.09	-4.6%
ROE	7.6%	4.7%	3.3%	5.2%	—
ROCE	12.0%	9.8%	8.7%	7.3%	—
Total Debt	₹822 Cr	₹1,069 Cr	₹1,382 Cr	₹1,898 Cr	+32.2%
Free Cash Flow	₹71 Cr	-₹657 Cr	-₹440 Cr	-₹221 Cr	—

🟢 Revenue has grown at 14.1% a year over 3 years.

🟢 EBITDA has grown at 8.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.9% to 23.1% over 3 years (-3.9 pts).

🔴 PAT (Net Profit) has shrunk at 2.0% a year over 3 years.

🔴 EPS has shrunk at 4.6% a year over 3 years.

🔴 ROE has fallen from 7.6% to 5.2% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 12.0% to 7.3% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 32.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹71 Cr to -₹221 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,013 Cr

Total Liabilities

₹3,383 Cr

Cash & Equivalents

₹378 Cr

Operating Cash Flow

₹334 Cr

Capex

-₹555 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

83.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 2 Sell

Target Price (Mean)

₹1,279.17

+9.0% vs CMP

Target Range

₹1,000 – ₹1,700

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

3 mixed3 general

Anupam Rasayan (ANURAS.NS) Slips 1.62% to ₹1167.8, Drifting Toward Mid-Range Support - Index Put Call

https://www.siam.in/, 15 Oct

Anupam Rasayan India Share Price Analysis After 5.55% Fall

Univest, 08 Oct

Anupam Rasayan India (NSEI:ANURAS) Stock Forecast & Analyst Predictions

Simply Wall Street, 25 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Anupam Rasayan share price falls 5% after NCD issue announcement | NCD size, other details here

TradingView, 21 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Anupam Rasayan Signs $300 Million LOI With BASQUEVOLT; Shares Slip

HDFC Sky, 15 Jul

Anupam Rasayan share price falls 5% after NCD issue announcement | NCD size, other details here

Livemint, 21 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑