Buy J.B. Chemicals and Pharmaceuticals target of Rs 2250 Prabhudas Lilladher

Prabhudas Lilladher is bullish on J.B. Chemicals and Pharmaceuticals has recommended buy rating on the stock with a target price of Rs 2250 in its research report dated November 08, 2024.

Broker Research

November 11, 2024 / 17:21 IST

Buy

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on J.B. Chemicals and Pharmaceuticals

J.B. Chemicals & Pharmaceuticals (JBCP) Q2FY25 EBITDA growth of 11% YoY was in line with our estimates. Revenue growth across domestic formulation was healthy while contract manufacturing business growth should recover from H2FY25. We believe JBCP will continue with its growth momentum driven by 1) geographical expansion of legacy brands 2) improvement in MR productivity 3) scale up in Sanzyme, Azmarda and Razel franchise 4) launch of new products & therapies 5) scaling up contract manufacturing business and 6) improvement in FCF generation. Our FY25/26E EPS remains unchanged.

Outlook

We expect EPS CAGR of 24% over FY24-27E. At CMP, the stock is trading at 31x FY26E EPS adj for ESOP and amortization. We maintain ‘BUY’ rating with TP of Rs2,250/share, valuing at 35x Sept 2026E EPS adj for ESOP and amortization.

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