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Buy Jubilant Life Sciences; target of Rs 850: ICICI Direct

ICICI Direct is bullish on Jubilant Life Sciences recommended buy rating on the stock with a target price of Rs 850 in its research report dated November 08, 2020.

November 09, 2020 / 11:54 AM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Jubilant Life Sciences

Q2 results were almost in-line with I-direct estimates. Revenues grew 4.8% YoY to Rs 2375 crore. Pharma business grew 4.4% YoY to Rs 1516 crore led by growth in CMO and generics. Life science ingredients (LSI) revenues also grew 4.4% YoY to Rs 786 crore on good demand and improved pricing of select products. EBITDA margins stayed flattish (down 20 bps YoY) at 20.5% with lower other expenses being offset by lower gross margins. EBITDA grew 3.8% YoY to Rs 486 crore. PAT de-grew 10.2% to Rs 224 crore. Delta vis-a-vis EBITDA was due to lower other income and higher tax rate.


As both these businesses have different fortunes, return profiles, we continue to value the company on SoTP basis till formal separation. Accordingly, we arrive at a target price of Rs 850.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.


Broker Research
first published: Nov 9, 2020 11:54 am

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