Jubilant Pharmova Ltd. share price target

Revenue grew by 8.83% to Rs. 1565.79 Cr in Q4FY17 when compared to the previous quarter.

ICICI Securities Ltd | Retail Equity Research Revenues grew 10% YoY to | 1641 crore (I-direct estimate: | 1644 crore). Revenues in LSI revenues grew 18% YoY to | 782 crore (Idirect estimate: | 697 crore) while the pharma business grew mere 2.4% YoY to | 860 crore (I-direct estimate: | 926 crore) EBITDA margins declined 100 bps YoY to 18.6% (I-direct estimate: 22.4%), adversely impacted mainly due to a change in the product mix and one-off. EBITDA increased 5% YoY to | 305 crore Adjusted net profit grew 283% to | 150 crore (I-direct estimate: | 163...

Revenue grew by 5.82% to Rs. 1438.81 Cr in Q3FY17 when compared to the previous quarter. Also, it grew by 8.65% when compared with Q3FY16.

ICICI Securities Ltd | Retail Equity Research Revenues increased 7% YoY to | 1492 crore (I-direct estimate: | 1534 crore). Pharmaceutical segment grew 15% YoY to | 829 crore (I-direct estimate: | 873 crore) while life science ingredients (LSI) declined 3% YoY to | 663 crore (I-direct estimate: | 640 crore) EBITDA margins increased 40 bps YoY to 22.2%. However, margins were below I-direct estimate of 25.5%, mainly due to lower-thanexpected EBITDA margins in the LSI segment. EBITDA increased 8% YoY to | 332 crore (I-direct estimates: | 390 crore)...

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 3% YoY to | 1419 crore (I-direct estimates: | 1434 crore). Revenues in the pharmaceutical business grew 8% YoY to | 807 crore (I-direct estimate: | 795 crore) while life science ingredients (LSI) revenues de-grew 14% YoY to | 613 crore (I-direct estimate: | 620 crore) due to a decline in life science chemicals segment led by lower crude prices and product calibration EBITDA margins increased 207 bps YoY to 24.0% (I-direct estimates:...

Jubilant Life Sciences (Jubilant), through one of its units Jubilant DraxImage, Canada, has received USFDA 505 (b)(2) approval (new drug application) for Ruby-fill (Rubidium 82). Ruby-fill is used for nuclear cardiology diagnostic positron emission tomography (PET) procedure to evaluate regional myocardial perfusion in adult patients with suspected or existing coronary artery disease. The product is expected to be launched in Q3FY17. As per management estimates, the current US market size is US$76 mn and has potential to grow up to US$250 million annually in the...

Change in methodology from EV/EBITDA to PE as profitability improves: After taking a re-look at an improved leverage situation (a legacy issue for the company in the last five years) we have critically evaluated our earlier methodology of applying EV/EBITDA gauge for valuation. We believe it is the right time to change the same to PE gauge as the debt component in EV has come down substantially as reflected in Exhibit 2, besides waning debt stress and improved business mix (hence EBITDA margins). The situation is likely to improve further in FY16-19E. Accordingly, we arrive at our new target price of | 635 (from | 420 earlier) based on 10x FY19E EPS of | 63.5. We still value Jubilant at a substantial discount to peer pharma companies due to the blended business model (47% of revenues from commoditised LSI segment) besides a volatile past. However, we do not rule out a further re-rating in the stock.

 

Revenues de-grew 1.8% YoY to | 1420 crore (I-direct estimate: | 1547 crore). Revenues in the pharmaceutical business (including drug discovery segment) grew 10.1% YoY to | 802 crore while life science ingredients (LSI) revenues de-grew 13.9% YoY to | 618. Degrowth in the LSI segment was mainly due to lower crude prices and optical focus on profitable products. EBITDA margins increased ~345 bps YoY to 25.9% (I-direct estimate: 21.8%) on the back of 180 bps increase in both pharmaceutical and LSI margins to 34% and 19%, respectively.Adjusted net profit grew 22.8% to | 162 crore (I-direct estimate:| 132 crore) due to better operational performance and lower interest cost.

BUY Jubilant Life Sciences Ltd between Rs. 325 - 300 for the target of Rs. 370 - 410

Jubilant Life Sciences Limited, is an integrated global pharmaceutical and life sciences company engaged in manufacturing and supply of APIs, Solid Dosage Formulations, Radiopharmaceuticals, Allergy Therapy Products, Advance Intermediates, Fine Ingredients, Crop Science Ingredients, Life Science Chemicals and Nutritional Products. It also provides services in Contract Manufacturing of Sterile Injectables and Drug Discovery Solutions. The Company's strength lies in its unique offerings of Pharmaceutical and Life Sciences products and services...