Blue Jet Healtchare Can Rally 25% Says Motilal Oswal, Maintaining 'Buy' Post Inline Q4 Results

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Motilal Oswal Report

Blue Jet Healthcare Ltd.’s revenue growth will be driven by new products in iodinated and gadolinium contrast media, new chemical entity intermediates, and a high-intensity sweetener variant. The pharmaceutical intermediates/active pharma ingredient segment is also set for strong growth, with further ramp-up in supplies for Esperion’s bempedoic acid in FY26.

We expect a CAGR of 27%/30%/25% in revenue/Ebitda/PAT during FY25-27E, with an expected average Ebitdam of 38% during FY26-27E. We expect an average RoE/RoCE of ~29%/25% during FY26-27, with an average fixed asset turnover of 3x.

The stock is trading at a P/E of ~28x on FY27E EPS of Rs 27.6 and FY27E EV/Ebitda of ~21x. We reiterate our Buy rating with a target price of Rs 965, valuing the company at a P/E of 35x on FY27E EPS of Rs 27.6.

Downside risks include high product and customer concentration, delays in new product ramp-up, and lower margins. Upside risks include a faster ramp-up of high-margin products and increased long-term contracts that could boost growth and valuations of the company.

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