Jubilant Pharmova Stocks: Buy Jubilant Pharmova; Target price Rs 417: ICICI Securities | Techno Glob


Buy call on Jubilant Pharmova with a target price of Rs 417. The current market price is Rs 334.3. Jubilant Pharma Ltd. The time period given by the analyst when the price can reach the target specified by is one year.



Jubilant Pharma Ltd. is a Mid Cap Company incorporated in 1978 (with a market cap of Rs 5304.06 crore in the pharmaceutical industry sector).

Jubilant Pharma Ltd. Key product/revenue segments include organic chemicals; Includes other operating tax and sale of services for the year ending 31-Mar-2021.

Finance

For the quarter ended 30-09-2022, the company reported a total revenue of Rs 1612.60 crore, Last quarter total revenue was down 10.22% from Rs 1463.03 crore and -2.97% from last year total revenue of Rs 1661.90 crore. . The company reported a net profit after tax of Rs 7.58 crore in the last quarter.

Investment Rationale
Due to continued price pressures in the US business and declining margins in the CDMO API business, the brokerage lowered FY23 EPS estimates by ~10-11%. Near-term margins may be under pressure, but a sustained correction in the stock price (~42% over the past 6 months) makes valuations attractive. Therefore, It is upgraded from Add to BUY with a revised target price of Rs417/share based on 13xSep’24E EPS (earlier: 13xSep’24E EPS based on 13xFY24E EPS). Key risks: A generally slower-than-expected recovery; rules and regulations.


Promoter/FII Holdings
Promoters hold 50.68 per cent stake in the company as on 30-Jun-2022, while FIIs hold 23.47 per cent; DII owns 0.62 percent.

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