Jubilant Org an outperformer; target Rs 280: Karvy

Jubilant Life BSE | NSE 10/02/12 Are Mutual Funds betting on Jubilant Life?

Karvy Stock Broking has maintained outperformer rating on Jubilant Organosys with a target of Rs 280, in its November 10, 2009 research report.

 

"Jubilant Organosys revenues for the quarter were flat at Rs 9331 million in Q2FY10 which was below our estimates of Rs 9627 million mainly on account of 20 % de-growth in Industrial and Performance Products (IPP) business. On account of expected better performance in PLSPS business we have factored 19 % growth in the PLSPS business while assumed a 4 % growth in the IPP business which is a drag on the business. We have also increased our gross margins on account of better traction in the CMO (Customs Manufacturing Operations) and the DDDS (Drug Discovery and Development Services). We have marginally downgraded our FY 10 revenues but increased our FY 11 revenues by 1.7 % to Rs 45.7 billion on account of better traction expected in PLSPS business."

 

"We increase our FY10 EPS estimates by 0.74 % to Rs 27.1 while we increase our FY 11 EPS estimates by 3 % to Rs 34.6. On account of earnings revision we upgrade our price target by 7.7 % to Rs 280 based on 8.1x FY 2011E. We maintain our Outperformer rating on the stock," says Karvy Stock Broking research report," says Karvy Stock Broking research report.

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