Acutaas Chemicals climbs 137% in a year on strong performance, JM Financial sees further 10% upside to ₹3,800

JM Financial has resumed coverage on the stock with a buy rating and a 12-month target price of ₹3,800, implying around 10% upside from current levels. The target is based on 45 times the September 2028E earnings per share.

Over longer horizons, the stock has surged 383% in two years and 419% in three years, according to BSE data. It touched a 52-week high of ₹3,735 on 6 July and a low of ₹1,290.05 on 1 October of the previous year.

The brokerage expects sustained earnings growth, driven by a projected 28% CAGR in the CDMO business from FY26 to FY30E. This growth is underpinned by rising Daro-V volumes, which could reach nearly 160MT by FY30E, translating to revenue of about ₹1,700 crore. Specialty chemicals revenue is forecast to grow at a 45% CAGR, rising from ₹160 crore in FY26 to ₹730 crore by FY30E, led by demand in semiconductor chemicals and electrolyte additives.

JM Financial estimates revenue, EBITDA, and PAT to grow at CAGRs of 28%, 29%, and 28% respectively over FY26–30E. In FY26, the company reported a 33% year-on-year rise in revenue from operations to ₹1,339.4 crore, with PAT jumping 122% to ₹356.4 crore and EBITDA increasing 107% to ₹480.4 crore. The EBITDA margin expanded to 35.9% from 23% in FY25.

Major non-promoter shareholders include Government Pension Fund Global (3.54%), Kotak Mahindra Trustee Company (3.53% via Kotak Multicap Fund), SBI Healthcare Opportunities Fund (2.35%), and Axis Max Life Insurance (2.19%). Foreign portfolio investors held a combined 21.61% stake as of the June quarter of FY27.