Broker’s call: Acutaas Chem (Buy)

Acutaas Chemicals is poised for sustained earnings growth, driven by a strong compound annual growth rate (CAGR) of 28% in its contract development and manufacturing organization (CDMO) business from FY26 to FY30E. This growth is further bolstered by incremental contributions from emerging sectors such as electrolyte additives, semiconductors, and electronic chemicals.

The company projects a threefold increase in Daro-volumes over the same period, reaching approximately 160 tonnes by FY30E, fueled by the growing Nubeqa patient base following successful trial outcomes of ARASTEP and DASL-HiCaP. This growth is expected to generate about ₹1,700 crore in Daro-V revenue by FY30E, serving as the key growth driver in the CDMO sector.

Additionally, the Specialty Chemicals segment is anticipated to experience a 45% CAGR, rising from ₹160 crore in FY26 to ₹730 crore by FY30E. This surge is attributed to the transition towards higher-value semiconductor chemicals and electrolyte additives. In the Phama Intermediates segment, the introduction of four new CDMO molecules is projected to scale up to ₹320 crore by FY30E, while Apixaban's patent expiry in November 2026 is expected to fuel growth in the existing pharma business.

In summary, the company anticipates a revenue, EBITDA, and PAT CAGR of 28/29/28 percent over FY26 to FY30E. This note renews Acutaas' coverage with a Buy rating and a target price of ₹3,800, calculated based on 45 times the Sep'28 earnings per share.