Buy Jubilant Life Sciences, target Rs 1040: Siddharth Sedani

Siddharth Sedani

Jubilant Life Sciences has crafted a niche wherein it has built its presence in segments like nuclear medicine (radiopharma), contract manufacturing of sterile injectables and allergy immunotherapy - which have high entry barriers on account of manufacturing complexity.

Also being backward integrated for most solid dosage filings in the US, the same is sustainable and attractive too.

JLS has planned to invest about Rs 550 crore in capital expenditure in FY19. In addition, JLS plan to invest Rs 300 crore in R&D during the year, including Rs 150 crore in Product Development expenditure.

We maintain a buy on the stock, with a target of Rs 1,040, based on 11.7x FY20e EPS.

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