KRChoksey Sees 6% UPSIDE in Anupam Rasayan India LTD Weak Quarterly
KRChoksey Sees 6% UPSIDE in Anupam Rasayan India LTD Weak Quarterly
KRChoksey Sees 6% UPSIDE in Anupam Rasayan India LTD Weak Quarterly
Anupam Rasayan India Ltd. Weak quarterly performance due to lack of demand in end customer business
CMP Target Potential Upside Market Cap (INR Mn) Recommendation Sector
INR 932 INR 990 6.1% INR 1,00,185 ACCUMULATE Specialty Chemicals
• EBITDA declined 3.0% YoY but grew 6.0% QoQ to INR 1,075 Mn, for H1FY24 EBITDA declined marginally by 0.2% to INR 2,089 Mn. EBITDA margin contracted 80 bps YoY
but expanded 116 bps QoQ to 27.4%, for H1FY24 EBITDA margin contracted 160 bps to 26.8%. The quarterly YoY decline in margin is due to a slight increase in other
expenses and employee costs.
• PAT declined 2.1% YoY but grew 5.4% QoQ to INR 407 Mn, this YoY decline was due to an increase in finance cost, tax expense and depreciation which was partially
offset by an increase in other while PAT margin contracted 21 bps YoY but expanded 38 bps QoQ to 10.4% while for H1FY24, PAT declined 2.5% YoY to INR 793 Mn while
PAT margin declined 85 bps YoY to 10.2%.
Volume Avg (3m K) 208 PAT margin (%) 8.7% 14.2% 13.5% 14.3% 15.8%
Bloomberg Code ANURAS IN P/E (x) 108.9x 61.3x 44.6x 48.9x 33.6x
Nov-23
Dec-21
May-22
Sep-22
Aug-21
Feb-23
Dip in the profitability margins due to a slight increase in other expenses and employee costs
Gross margin for the quarter contracted 29 bps YoY and expanded 74 bps QoQ to 58.6%, this marginal contraction is
Anupam Rasayan India due to a decline in raw material cost passed on to customers, while for H1FY24, gross margin contracted 118 bps
YoY to 58.2%. EBITDA declined 3.0% YoY but grew 6.0% QoQ to INR 1,075 Mn, for H1FY24 EBITDA declined marginally
Sensex by 0.2% to INR 2,089 Mn. EBITDA margin contracted 80 bps YoY but expanded 116 bps QoQ to 27.4%, for H1FY24.
EBITDA margin contracted 160 bps to 26.8%. The quarterly YoY decline in margin is due to a slight increase in other
expenses and employee costs. The EBITDA margin guidance for the next two years is around 26.0% to 28.0% on a
MARKET INFO
standalone basis, though ANURAS has reached 29.0% historically, the management wants to be conservative. In
Q2FY24, 3 new molecules were commercialized taking a total of 5 new molecules commercialized in H1FY24. Of the
SENSEX 65,930 total 3 molecules launched in Q2FY24, 1 molecule is from the fluorination series and 1 molecule is from signed LOIs
and contracts. It is expected total of 10 new molecules to be launched in FY24.
NIFTY 19,783
16.2% 25.6%
Promoters 60.7 60.8 60.8
Others 27.2 25.7 25.7 Revenue CAGR between FY23 PAT CAGR between FY23 and
Total 100.0 100.0 100.0 and FY25E FY25E
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
Q2FY24 Analysis
Particulars (INR Mn) Q2FY24 Q1FY24 Q2FY23 QoQ Y oY H1FY24 H1FY23 YoY
Revenue from Operations 3,921 3,864 3,928 1.5% -0.2% 7,785 7,364 5.7%
Total Expenditure 2,847 2,850 2,820 -0.1% 0.9% 5,696 5,270 8.1%
Cost of Raw Materials 1,872 2,298 1,833 -18.5% 2.1% 4,170 3,917.9 6.4%
Changes in Inventories -247 -667 -217 -63.0% 14.0% -914 -925.3 -1.2%
Employee Cost 185 186 181 -0.6% 2.4% 371 324.3 14.4%
Other Expenses 1,036 1,033 1,023 0.3% 1.3% 2,070 1,953.5 6.0%
EBITDA Margin (%) 27.4% 26.2% 28.2% 116 bps -80 bps 26.8% 28.4% -160 bps
Interest Expense 204 178 160 14.7% 27.5% 382 282.4 35.4%
PBT before Exceptional 707 773 674 -8.6% 4.8% 1,480 1,296 14.2%
PAT Margin (%) 10.4% 10.0% 10.6% 38 bps -21 bps 10.2% 11.0% -85 bps
Adj. PAT 407 386 416 5.4% -2.1% 792.9 812.8 -2.5%
Adj. PAT Margin (%) 10.4% 10.0% 10.6% 38 bps -21 bps 10.2% 11.0% -85 bps
Adj. EPS 3.8 3.6 4.1 5.4% -8.7% 7.4 8.3 -11.5%
Source: Company, KRChoksey Research
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
58% 10%
51% 10% 18% 8% 13%
44%
12%
4,800 90% 92% 90%
3,928 3,827 -0.2% 82% 87%
3,864
3,921
Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
12% 12%
28% 11%
10% 10%
27%
27%
26%
24%
1,108 1,019 1,173 1,014 1,075 478 429 567 386 407
Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
RESEARCH ANALYST KRChoksey Research Phone: +91-22-6696 5555, Fax: +91-22-6691 9576
Unnati Jadhav, [email protected], +91-22-6696 5420 is also available on Bloomberg KRCS<GO>
www.krchoksey.com
Thomson Reuters, Factset and Capital IQ
India Equity Institutional Research II Result Update – Q2FY24 II 22nd November 2023
Anupam Rasayan India Ltd Rating Legend (Expected over a 12-month period)
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