JB Chemicals’ Q4 FY25 earnings were in line with estimates. Ebitda margin excluding ESOP at around 25% was also in line. The company guided FY26 operating Ebitda margin (ex-ESOP) to be in the range of 27-29% and 30-50 bps improvement in gross margin.
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Dolat Capital Report
JB Chemicals and Pharmaceuticals Ltd.’s focus on the domestic chronic portfolio and contract manufacturing organisation segment, combined with traction in export formulations, provides strong earnings visibility, superior cash flows, and return ratios.
We maintain our ‘Buy’ rating with a revised target price of Rs 2,081 at 32 times FY27 P/E adjusted for ESOP and amortization.
Key risks: Price control on any drugs and higher input cost.
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Also Read: Bharti Airtel Q4 Review: Dolat Capital Maintains 'Add', Hikes Target Price Post Inline Results
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