Should Anupam Rasayan stock hold or sell

 What investors & traders should do in Anupam Rasayan stock?

The stocks of the speciality chemical sector have given multibagger returns in the last 1 year. , If we talk about IPO market then in the last 18 months, many companies have launched IPO in India market. But some of those companies have also given multibagger returns but few out of them have also given negative returns. 

According to our research, the management's of some companies had left some space for IPO investors to earn listing gains, but there were many such companies which did not leave anything on the table after listing for IPO investors. One of them is the company name Anupam Rasayan India Ltd. Listing gains were made in the IPO of this company, but after that some investors got stuck at higher price levels. In today's article we will tell our viewers that Anupam Rasayan stock should hold or sell? Or should Anupam Rasayan stock be a buy? First of all let us understand about the business model of Anupam Rasayan India Ltd.

What is the business of Anupam Rasayan India?

Anupam Rasayan India company is mainly generating business from custom synthesis and manufacturing of specialty chemicals. Company has more focus on manufacture products with sustainability with latest  use of process technology by flow chemistry ,  photo chemistry. Also, Company has greater R&D and engineering capabilities to deliver best results to its customers for their complex and multi-step synthesis projects.

Anupam Rasayan  has  strong grip on custom manufacturing of  different synthesis molecules  like

1) Life science related speciality chemicals

2) Products related to agro chemicals, personal care and pharmaceuticals.

3) Different speciality chemicals such as comprising speciality pigment and dyes,and polymer additives on exclusive basis.

Should you Buy Anupam Rasayan stock?   Bse code: 543275, NSE: ANURUS

Positive Points of Anupam Rasayan

1) There is no doubt that company products will be more in demand. Even Speciality chemical sector is in more focus of Indian government.

2)  Anupam Rasayan had recently raised nearly 760cr at price band of 553rs to 555rs from Indian market through IPO & Company will use this amount for expansion for coming 3 years. As per company management, currently company is working with 60% capacity but after expansion remaining 40% will be covered by the company in coming few years.  It also goes in the favour of the company

3) China plus one strategy will also work for this company because Now world is expecting Indian chemical sector to grow in the coming years and may compete with Chinese companies.

4) Indian government is also offering PLI scheme for speciality manufacturing companies.

5) In the recent year, Company had reported revenues growth of nearly 45% but it will have to see if company will able to sustain such growth in the coming years or not. Because we had seen in some companies that before coming up with their companies IPO, few companies shows good revenues growth but after that those companies don’t sustain such growth.

Negative points of Anupam Rasayan Company:

1) Anupam Rasayan stock is trading at 786.30 & Anupam Rasayan stock made 52 week high of 877.80rs. It looks very expansive at this point of time.

2)  There is lot of competition in the market in which segment Anupam Rasayan Company is running its business. Even we cannot directly compare it with companies like PI Industries but still big market players are there.

3) In the October 2020, Anupam Rasayan Company had issued shares to of the company promoters at the price of 248rs. But company had come up with the IPO issue price of 553rs to 555rs. Why company management had done this? Why IPO price was high for retail investors?

Financial Analysis of Anupam Rasayan Company:

Total revenues

If we will check the financial results of company since FY17 to FY21 then company showed very good growthin the revenues front. In FY 17 Total revenues was nearly 290cr, In FY 18 342cr, FY19 to Fy21 total revenues was nearly 1840cr.

Net Profit

Anupam Rasayan has shown double digit net profit growth in the last 5 years. From FY 17 to FY21, Anupam Rasayan has reported total net profit nearly 254cr it is a very good growth in the net profit front.

Earnings per share

In the last 5 years, Anupam Rasayan has rerecorded EPS of avg.  8.1rs, which is also, looks impressive.

Overall, Anupam Rasayan company financials looks good but at the price stock is trading looks very expensive. Even we have seen more than 100rs per share profit booking from the 52 weeks high but still it looks very expensive. ROE of the company also reached at 4.4 from 14.5. Fundamentals of Anupam Rasayan company looks average as compare to its peer companies.

Our recommendation on Anupam Rasayan:

Anupam Rasayan hold or sell ?

If we will read above discussion carefully then we will find that Anupam Rasayan stock is trading at 2023 valuation which are yet to meet. It is better to book profit in Anupam Rasayan & if anyone is interest for making new investment then wait for lower levels to come. Otherwise follow the technical levels and setup your trade accordingly. Let us discuss technical charts of Anupam Rasayan.

Technical price levels of Anupam Rasayan stock:

Buy Anupam Rasayan stock:

Even we do not recommend anyone for buying Anupam Rasayan stock at current price levels but still if any trader wants to make trading positions then follow these levels with stoploss and price targets.

(a) Anupam Rasayan stock trade only above 792.80rs with strict stop loss of 775rs on closing basis. Short term price targets of Anupam Rasayan stock are 801.80rs, 810.80rs, 818.80, 825rs, 835rs, 845.80rs, 852.50rs. If Sustain above 880rs and gives close above 880rs price level then targets will be open. In this case stoploss will be 865rs.

Sell Anupam Rasayan stock;

If in case Anupam Rasayan stock break price level of 775rs and gives close below this price level then short term lower price levels for Anupam Rasayan stock will be 765rs, 755.80rs, 748.20rs, 740.50rs, 732.80rs or below.

(b) If in any case Anupam Rasayan stock gives close below 725.80rs. Then we may see sharp sell of in Anupam Rasayan stock which may drag stock to  720rs, 715.80rs, 708.0rs 698, 692rs, 682rs, 672rs to 650rs. 638rs, 630rs, 625rs or  below.

It is advisable to all our website viewers that Anupam Rasayan stock is in “no trading” zone until it does not gives close above discussed price levels. If you still want to trade in Anupam Rasayan stock then follow the price levels with strict stop losses & price targets.

Should you invest in Anupam Rasayan for long term?

We do not recommend new investors for making new investment in Anupam Rasayan stock at current price of 786.50rs ( closing price of 1-Nov-2021). It is better to start accumulate Anupam Rasayan stock in small number of sets after at least 20% to 30% correction from current price levels.