Reliance Money has maintained its buy rating on Jubilant Organosys with a revised target price of Rs 203 in ite report dated July 17, 2009.

"Jubilant Organosys reported a muted growth of 8% in its consolidated revenues to Rs 9013 million in Q1FY10, as the Industrial and Performance Products (IPP –that contributes about 30% of total revenue) Revenues saw 8% decline on account of lower realization and product rationalization. Despite global slowdown and inventory issues, Jubilant has been delivering steady growth in its CRAMS operation and we expect similar trend going ahead. Further increasing R&D pacts provide us long term visibility for the company. Also, the margin expansion seems to be continuous process for Jubilant. Looking at the steady revenue growth with better profitability and reducing balance sheet risk for Jubilant, we maintain our 'BUY' rating with the revised target price of Rs 203 (7x FY11EPS), " says Reliance Money's report.

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