Anupam Rasayan shares: Chemical stock edges higher after THIS order update; should you buy?

Anupam Rasayan share price climbed nearly 3 per cent in morning trade on BSE on Tuesday, March 11, in a weak market. The fresh uptrend in the stock came a day after the company announced it signed a ₹922 crore LOI (letter of intent) with a leading Korean MNC.

Anupam Rasayan share price opened at ₹802.05 against its previous close of ₹787.70 and rose 3 per cent to the level of ₹810.55. The chemical stock, however, pared gains significantly as around 9:45 AM, the stock traded 0.46 per cent up at ₹791.35.

Anupam Rasayan order update

After market hours on May 10, Anupam Rasayan announced signing a letter of intent with a Korean multinational recognised for its leadership in speciality chemicals.

"Anupam Rasayan India, a leading custom synthesis and speciality chemicals company, has signed a 10-year letter of intent valued at $106 million (approximately ₹922 crores) with a Korean multinational recognized for its leadership in speciality chemicals for a high-performance niche chemical expected to be supplied from FY26," said the company.

"This long-term partnership reinforces Anupam’s expertise in delivering advanced chemical solutions and strengthens its presence in high-growth global markets," it said.

"Securing this long-term LOI with a global industry leader is a testament to our strong R&D capabilities and commitment to innovation. The speciality chemical covered under this agreement has niche applications in the aviation and electronics sectors," said Gopal Agrawal, CEO of Anupam Rasayan.

"Our robust backward integration capabilities ensure a stable and efficient supply chain, offering reliability and consistency to our global customers. Expanding into South Korea adds another significant geography to Anupam Rasayan’s global presence, positioning the company for long-term growth in one of the world’s most advanced manufacturing hubs," said Agrawal.

Anupam Rasayan share price trend

Anupam Rasayan shares have been under pressure over the last year, falling 16 per cent as of March 10 close.

The chemical stock hit a 52-week low of ₹600.95 on February 28 this year after hitting a 52-week high of ₹954 on March 11 last year.

Should you buy Anupam Rasayan stock?

After a recent fall in the stock market, some experts have started seeing value in Anupam Rasayan's stock price.

Brokerage firm Emkay Global Financial Services has maintained an add' call on Anupam and revised its SoTP-based target price upward by nearly 7 per cent to ₹800 to factor in the Tanfac valuation.

The positive view of the brokerage has come after it visited Anupam’s plants based in Jhagadia and Surat, Gujarat, and also met Deputy CFO Vishal Thakkar.

"The management expects peak revenue potential of ₹30 billion from the current gross block of nearly ₹20 billion. The pharma and polymer segments continue to fare well, with agrochemical recovery in sight. Anupam has signed a couple of LoIs in the battery, aviation, and electronics sectors. It targets 35-40 per cent revenue growth in FY26, with EBITDA margin stabilising at nearly 26-28 per cent," said Emkay Global.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.