Prabhudas Lilladher's research report on JB Chemicals and Pharmaceuticals
J.B. Chemicals & Pharmaceuticals (JBCP) Q4FY25 EBITDA growth of 14% YoY was in line with our estimates. Revenue growth across key segments (domestic and CDMO) was healthy during the quarter. We believe JBCP growth momentum to continue driven by 1) geographical expansion of legacy brands 2) improvement in MR productivity 3) scale up in acquired brands 4) launch of new products & therapies 5) scaling up contract manufacturing business and 6) strong FCF generation. Further margins will continue to improve beyond FY27 with grant of perpetual license of acquired opthal portfolio. Our FY26E/27E EPS broadly remains unchanged. We expect EPS CAGR of 22% over FY25-27E. At CMP, the stock is trading at 26x FY27E EPS.
Outlook
We maintain ‘BUY’ rating with TP of Rs2,030/share, valuing at 32x FY27E EPS.
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