Analyst's Diary: How to win against Chinese dumping

Indian chemical manufacturers have seen better days. Excessive dumping from Chinese competitors and a recessionary macroeconomic environment have led to most players in this industry struggling to keep their margins up. The situation is so dire that recently, the Crop Care Federation of India, a body comprising key players in the agrochem industry, has appealed to the government for an increase in import tariffs. Against this backdrop, Anupam Rasayan, whose name roughly translates to a unique path to essence in Sanskrit, stands out as an oddity. True to its namesake, it has forged a unique path in this ailing industry. In the past five years, it has maintained a robust median operating profit margin of 20 per cent, with a maximum standard deviation of just 2.9 percentage points. However, resilience is not all Anupam Rasayan offers. With a promising new acquisition, the company is aiming for the sky at a time when most are focusing on holding their ground. So, is this combination of stable margins and new business prospects enough to warrant an investment? For that, we must check whether the factors that fuel its stability are sustainable and what this new acquisition brings to the