Buy Jubilant Organosys, target of Rs 428: Karvy

Karvy Stock Broking has recommended a buy rating on Jubilant Organosys with a target price of Rs 428 in its july 18, 2008 research report. "The net revenues for the quarter reported at Rs 8.27 billion exhibiting 53.1% y-o-y and 20% q-o-q growth against our estimates at Rs 7.46 billion mainly driven by strong growth witnessed from the Pharmaceutical Life Science Products & Services (PLSPS) segment. As expected, the Contract Research and Manufacturing Services (CRAMS) segment acted as the major and primary growth driver for the company contributing 54% to total net revenues and 86% to the PLSPS segment."

"The reported net profit shown de-growth of 91.1% to Rs 127.6 million in Q1FY09. As a result of higher revenue guidance of 50% vis-a-vis 35% we upgrade our earnings by 31.7 % to Rs 24.1 in FY09E & by 18.8 % to Rs 28.5 in FY10E. We revise our price target by 19 % to Rs 428 based on 15x on FY10E earnings and rate the stock as a BUY," says Karvy's research report.

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