Sat, Aug 03, 2013 at 17:16
Target Price Rs 129
Implied Upside 53.6%
Rationale: While the sign of rising prices in PPES would help Jubilant to boost LSI business, we are concerned on pricing pressure in its major Pharma products. The company maintains average sales growth of 20-21%, with EBITDA margin at 21% in near-to-medium term. Jubilant’s core EPS 4.7 is in line with expectation, though we believe that high competition in Pharma products would increase margin risk.
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