Is Anupam Rasayan The Next Crash Candidate? SEBI RA Rajneesh Sharma Says Valuations Are ‘Hard to Sustain’

The analyst said that Anupam Rasayan's valuation metrics have sharply diverged from sector norms, with return ratios, and technical indicators also raising caution.

Anupam Rasayan’s stock appears significantly overvalued and technically overbought, signaling caution fundamentally and on the charts.

According to SEBI-registered research analyst Rajneesh Sharma, the specialty chemicals firm, known for its custom synthesis work with global clients, is currently trading at steep valuations. 

“Anupam Rasayan is a good company, but at this price, it’s simply too expensive,” he said.

He flagged a price-to-earnings ratio of 134, which is more than four times the sector median of 31.33, and a price-to-book ratio of 4.38, above the industry range of 2–3. 

Its Enterprise Value/EBITDA stood at 33.3, compared to a fair range of 12x–20x for chemical companies. 

“The market is paying for perfection — and perfection is hard to sustain,” Sharma said.

On return metrics, Sharma noted a return on capital employed (RoCE) of 7.33% and return on equity (RoE) of 3.33%, calling them insufficient for the premium being paid. The dividend yield is just 0.11%.

On the technical charts, Sharma pointed to several cautionary flags: a weekly Relative Strength Index (RSI) of 79.54, historically associated with corrections; proximity to the ₹1,228 resistance zone; and a parabolic rally pattern. 

He also said the price action mirrors previous peaks, with the stock pressing against the upper boundary of a long-term rising channel.

Sharma shared a short-term bearish view, a neutral medium-term view, and a bullish long-term outlook.

He advised investors holding the stock to consider booking partial profits near ₹1,200 and to use tight stop-losses. 

For new entrants, he recommended waiting for a pullback toward the ₹1,000–₹950 range, and for traders to monitor for rejection near ₹1,228.

The growth story remains valid, but the current price is overextended. Caution is the smart play, Sharma said.

The stock has risen 57.5% so far in 2025.

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