Hold Jubilant Ingrevia; target of Rs 713: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Jubilant Ingrevia with a target price of Rs 713 in its research report dated June 12, 2025.

Broker Research

June 13, 2025 / 10:02 IST

Hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Jubilant Ingrevia

Jubilant Ingrevia is one of the leading players in India supplying chemical intermediates to agrochemical innovators for almost 3 decades. The company is now transitioning to become a CDMO player and has already signed 2 contracts for agro CDMO, one of which is worth USD300mn and will start contributing to revenue from Q4FY26. As highlighted in our previous report, 7 more molecules with pyridine chemistry are expected to go off-patent by 2028, thus making Jubilant a good fit to manufacture them. However, unlike early stage patented molecules, these off-patent molecules face competition from generic manufacturers, leading to price erosion post patent expiry. Jubilant’s entry into CDMO will boost revenue.

Outlook

However, we remain apprehensive about the profitability and RoCE from the CDMO contracts. The stock is trading at 34x FY27E EPS and 17x FY27 EV/EBITDA. Retain “HOLD” rating with revised target price of Rs713.

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