Anupam Rasayan under pressure, falls around 10% in two days; here's why

Shares of Anupam Rasayan were under pressure in Friday's session (May 5). At the time of writing this news, the stock traded more than 3 per cent lower at Rs 1,103.30 apiece on the BSE. During the day, the scrip hit a low of Rs 1,061.55, down 7.4 per cent against the previous session's close of Rs 1,141.05. In two days, the shares of the chemical company have corrected around 10 per cent. The stock has witnessed a sell-off despite the company reporting a strong set of numbers for the March quarter as foreign brokerage Jefferies has downgraded the stock to 'Underper form' from 'Buy', citing premium valuations. 

The brokerage has also lowered the company's net profit estimates for FY24 and FY25 by 6 to 9 per cent.  It further added that the current stock price ignores all negative outcomes. Besides, domestic brokerage JM Financial also downgraded the stock to "HOLD". 

For the March quarter, the company reported a consolidated net profit of Rs 72.6 crore, up 57.6 per cent year-on-year (YoY) against Rs 46.1 crore logged in the year-ago period. Revenue of the company jumped 47.7 per cent to Rs 480 crore against Rs 325 crore registered in the March 2022 quarter. Earnings before interest, tax, depreciation, and amortisation rose 11.7 per cent to Rs 117.3 crore against Rs 105 crore seen in the corresponding quarter of the previous fiscal. 

Anupam Rasayan India Ltd (ARIL) is one of the leading companies engaged in the custom synthesis (CSM) and manufacturing of speciality chemicals in India. It was incorporated in 1984.

- With inputs from ZEE Business Research