Karvy Stock Broking has downgraded its rating on Jubilant Organosys from buy to outperformer with a target price of Rs 428 in its August 26, 2008 research report. "The net revenues of the company expected to grow at a CAGR of 37% from Rs 24.9 billion in FY08 to Rs 46.8 billion in FY10E with strong growth propelling from the CRAMS and DDDS segments coupled with consistent growth from the IPP business. The EBITDA margins are expected to improve from 18.1% in FY08 to 19.6% in FY09E & 19.5% in FY10E mainly on account of high margin CRAMS business." 

"Currently, the stock is quoting at 14.8x on diluted EPS of Rs.24.1 FY09E and 12.5x on diluted EPS of Rs.28.5 FY10E. We downgrade the stock from "BUY" to "Outperformer" maintaining our price target constant at Rs 428 on P/E of 15x on FY10E," says Karvy's research report.

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