Buy Jubilant Organosys; target of Rs 415: Hem Sec

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Hem Securities is bullish on Jubilant Organosys and has recommended buy rating on the stock with a target of Rs 415 in medium to long term investment horizon expecting an appreciation of about 20% from the current level of Rs 346.

"With steady growth in CRAMS operations, new customer addition, rise in capacities, robust revenue opportunities and strong operating performance, Jubilant Organosys is all set to see a boost to its revenues and profits. Further, the low margin Polymer business hive off will strengthen its core business going ahead and the management's decision to rebalance its finances by infusing fresh capital of Rs.1500 crore would strengthen its balance sheet settling some nerves towards high debt equity ratio for the company. In wake of such growth, Jubilant Organosys Ltd. seems to be extremely attractive investment opportunity."

"Presently, the stock is trading at Rs 346 which is at 13.85 times to its trailing twelve months (TTM) earnings and 4.03 times to its book value of Rs 85.90. Since the stock offers good opportunity, we initiate a 'BUY' signal on the stock with a target price of Rs 415 in medium to long term investment horizon expecting an appreciation of about 20% from the current level of Rs 346," Hem Securities research report.

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