Anupam Rasayan (ANURAS)

FairStock Score: 24/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Recent sales growth of 31.35% and profit growth of 73.96%, with latest quarter sales of ₹512 Cr and net profit of ₹61 Cr.
• Low balance sheet leverage: debt/equity of 0.38 and a Piotroski F-score of 7/9.
• High promoter holding of 59.07%, keeping owner-manager interests aligned.
• Five-year revenue CAGR of 12.12% shows established revenue traction in specialty chemicals.

Concerns

• Valuation is demanding at P/E of 82.01 and P/B of 5.46, with PEG of 1.56.
• Low returns on capital: ROE of 5.72% and ROCE of 7.33% do not justify a premium multiple.
• Free cash flow is negative at ₹-360 Cr despite reported profit growth, questioning earnings quality.
• Recent growth far exceeds the 5-year CAGR, so sustainability and cyclicality are open questions.

AI Analysis

Anupam Rasayan has the surface of a growth story, but I must look through the windshield, not the rearview mirror. Sales grew 31.35% and profit grew 73.96% recently, yet the five-year revenue CAGR is only 12.12%. That gap tells me the latest quarter is a burst of activity, not necessarily an enduring compounding machine. At ₹1,341 with a P/E of 82 and P/B of 5.46, the market is paying for perfection. The business earns a modest ROE of 5.72% and ROCE of 7.33% - hardly the returns on capital that justify a premium multiple. Book value is ₹245.42, so the market price implies enormous future wealth creation from a company that currently generates free cash flow of negative ₹360 Cr. Low debt-to-equity of 0.38 is good, and the Piotroski score of 7 suggests recent operational improvement, but a dividend yield of 0.06% means shareholders are entirely dependent on capital appreciation. Is there a moat? Specialty chemicals can benefit from customer relationships and custom synthesis barriers, but I cannot identify pricing power from these numbers; returns on capital are too low. Promoter holding of 59.07% is positive for alignment. The latest quarter's sales of ₹512 Cr and net profit of ₹61 Cr annualize to roughly ₹244 Cr, while the reported P/E of 82 implies trailing earnings of only about ₹172 Cr; one good quarter is not enough to make this price comfortable. I would rather watch from the sidelines until this company proves it can convert growth into free cash flow and higher returns on capital. In Buffett's words, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This looks like a fair company at a demanding price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer