Hold Jubilant Ingrevia; target of Rs 735 Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Jubilant Ingrevia with a target price of Rs 735 in its research report dated May 14, 2025.

Broker Research

May 15, 2025 / 13:29 IST

Hold

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Jubilant Ingrevia

Jubilant Ingrevia reported a slight decline in topline during the quarter, primarily due to a 14%YoY drop in revenue from the Chemical Intermediates segment. However, the Specialty chemicals and Nutrition & Health solutions segments posted YoY revenue growth of 2% and 15%, respectively, contributing to a 90bps improvement in overall EBITDAM. Agrochemical sales improved during the quarter, while the pharmaceutical segment saw stable demand and realizations. Going forward, we expect the Specialty segment to strengthen, supported by higher volumes of diketene, pyridine, and picoline derivatives, along with new CDMO orders. The Nutrition segment is also poised for growth, driven by the ramp-up of recently commissioned cosmetic-grade and food-grade Vitamin B3 plants, as well as growth in Niacinamide and Choline.

Outlook

However, the Chemical Intermediates business is likely to remain under pressure due to weak demand from end-use industries. At a valuation of 39x FY27 EPS, we maintain “Hold,” on the stock with a target price of Rs735, based on a sum-of-the-parts (SOTP) valuation approach.

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