Anupam Rasayan Ltd shares declined 6.5 percent on Thursday after Jefferies downgraded the stock from ‘Buy’ to ‘Underperform’ despite strong March earnings reported by the company.

Share Market Live

NSE

The brokerage firm cited a sharp run-up as one of the key reasons behind the downgrade. Shares of Anupam Rasayan, despite Thursday's correction, are up 63 percent year-to-date.

Jefferies has also cut the company's standalone financial year 2024 and 2025 net profit estimates by 6 percent and 9 percent respectively.

The brokerage expects a gradual ramp-up in the company’s fluorination LoIs while noting that legacy LoIs have ramped up slower than its expectation.

The speciality chemicals manufacturer reported a 22.94 percent rise in consolidated net profit year-on-year at Rs 56.68 crore in the March quarter compared to Rs 46.1 crore in the same period a year ago.

In a conference call conducted post market hours on Wednesday, Anupam Rasayan’s management said that the inventory days declined to 250 days in the financial year 2023 compared to 291 days in the previous year.

It expects inventory days in the range of 200-220 days by the end of the financial year 2024.

The company’s disruption related to the fire pushed out some revenues to the first quarter of fiscal year 2024.

In the fourth quarter of financial year 2023, the company’s management announced receiving three Letters of Intent (LoIs) having an annual revenue potential of Rs 450 crore, and these LoIs are expected to ramp up from the financial year 2025.

Shares of Anupam Rasayan ended 6.5 percent lower at Rs 1,133.90.

First Published:May 4, 2023 7:25 PM IST