2025-05-24-Jefferies-ANURAS（ANURAS）_2025财年第四季度回顾领先；不利的风险回报_15页_640kb

Equity Research Summary for ANURAS (Anupam Rasayan India Ltd.)

• Rating and Target: The current rating is Underperform, with a price target of INR 520, representing a 45% decrease from the 52-week high. This valuation is below the company's historical average and trades at a premium, making it unattractive.

• Recent Financial Performance: Revenue and EBITDA for FY25 were ahead of jeffe Estimates (JEFe) on signs of recovery in Agchem and new pharma molecules, but working capital worsened significantly, leading to negative operating cash flow (OCF) and rising net debt. Profit growth was strong, but inventory days increased sharply.

• Future Outlook: Management expects 25-30% revenue growth in FY26 driven by Agchem demand and pharma ramp-up, with pharma's revenue contribution rising to 22% from 4%. However, revenue conversion from pipeline (Rs 46bn out of Rs 146bn) is delayed, and a new battery materials contract may provide medium-term growth.

• Balance Sheet and Risks: Inventory and receivable policies remain liberal, but profit declined due to increased costs. Free cash flow is negative, and net debt has risen. Key upside risks include faster LOI conversion and Agchem cycle recovery, but downside risks involve R&D limitations, potential customer loss, and environmental concerns.

• Valuation and Notes: Trading at 58.3x 1-year forward PE, higher than historical averages, supports the Underperform view. The company operates in specialty chemicals and pharmaceuticals, with a diverse customer base. Long-term CAGR projections show modest revenue and profit growth on a depressed base.