Hold Jubilant Ingrevia; target of Rs 592: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Jubilant Ingrevia with a target price of Rs 592 in its research report dated July 17, 2024.

Broker Research

July 17, 2024 / 12:55 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Jubilant Ingrevia

In Q1FY25, pharmaceutical segment continued to witness strong volume growth with stable prices. Agrochem sector is expected to improve gradually, but prices are expected to remain under pressure due to demand related challenges and excess supplies from China. Demand for the nutrition segment was stable, while prices saw some uptick towards the end of the quarter. Specialty chemicals saw a 18% YoY growth driven by rising volumes of pyridine and diketene derivatives. Nutrition segment saw 13% sequential improvement in revenue, while acetyl segment, which contributes 40% to the overall revenue, declined by 20% YoY due to lower demand coming from the paracetamol end-use segment and lower acetic acid prices. Although, the company has been adding capacities across segments, challenges are expected to persist until international players keep dumping at lower prices and revival of agrochem weakness takes place, which is unlikely until H2FY25.

Outlook

The stock trades at 27x FY26 EPS. We reiterate ‘Hold’ rating with SOTP-based valuation of Rs592.

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