Acutaas Chemicals Ltd shares surged nearly 7% on Thursday after JM Financial resumed coverage on the specialty chemicals firm with a ‘Buy’ rating. The brokerage upgraded its previous ‘Add’ call and set a target price of Rs 3,800 per share, indicating roughly 17% upside from the level considered in its report.
The Acutaas Chemicals share price rose as much as 6.73% to Rs 3,451.05 during the session. JM Financial based its rating on expected growth in the company’s contract development and manufacturing organization (CDMO) business and new chemical segments.
JM Financial Sees Growth in Specialty Chemicals Business
Acutaas Chemicals has started shifting its specialty chemicals business away from products such as methyl paraben and salicylic acid. Instead, the company is expanding into electrolyte additives, semiconductor chemicals, and electronic chemicals.
JM Financial said, “Electrolyte additives could address a 150,000 MTPA global market by CY30E.” The brokerage added that Acutaas has already contracted capacity for VC and FEC. Along with two other additives, JM expects these products to generate about Rs 400 crore in revenue by FY30.
The brokerage also expects semiconductor chemicals to support growth. Acutaas has exposure to photoresist chemicals through BFC and Indichem. However, the revenue forecast depends on the planned ramp-up of the Korean facility, according to JM Financial.
JM expects specialty chemicals revenue to rise from around Rs 170 crore in FY26 to Rs 730 crore by FY30, representing a compound annual growth rate of about 45%. The brokerage expects electrolyte additives and semiconductor chemicals to account for much of this expansion.
CDMO Business Expected to Support Acutaas Chemicals Earnings
JM Financial expects the Acutaas Chemicals CDMO business to grow at a compound annual rate of about 28% between FY26 and FY30. The brokerage linked this forecast to existing operations and new molecules entering the company’s portfolio.
Acutaas currently has four new CDMO molecules across cardiovascular and oncology applications. According to JM Financial, each molecule could generate annual revenue of Rs 50 crore to Rs 100 crore.
The brokerage expects combined revenue from these four molecules to reach about Rs 320 crore by FY30. These estimates remain forecasts and depend on commercial scale-up, customer demand, and execution during the period.
Apixaban Opportunity Could Aid Legacy Pharma Business
JM Financial also expects the legacy pharmaceutical intermediates business to recover as Pfizer’s Apixaban approaches patent expiry in November 2026. The brokerage estimates a potential opportunity for Acutaas Chemicals if demand for related intermediates increases.
“Assuming Pfizer retains 20 per cent market share, we estimate an addressable opportunity of Rs 440 crore for Acutaas,” JM Financial said.
The brokerage expects Apixaban intermediates to help support the legacy pharma segment after the company’s portfolio changes. It forecasts this business could grow at a 12% compound annual rate between FY26 and FY30.
JM Financial estimates legacy pharma revenue could reach about Rs 880 crore by FY30. Meanwhile, the brokerage expects newer businesses, CDMO products, and specialty chemicals to contribute more to Acutaas Chemicals’ revenue mix over the coming years.
The Rs 3,800 share price target reflects JM Financial’s forecasts and assumptions. Actual revenue growth, margins, and the Acutaas Chemicals share price may vary based on business performance and market conditions.
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