Jubilant Ingrevia Q4 Results Review - Pricing Pressure Continues: Prabhudas Lilladher

Prabhudas Lilladher Report

Challenging market conditions continue to persist especially for the Agrochemical sector which may take another one-two quarters to get back to normal. Jubilant Ingrevia Ltd.'s pharmaceutical segment had healthy volumes and the Nutrition segment saw steady demand for the quarter but due to excess supply from China, realisation remained under pressure.

Specialty chemical saw a 30% QoQ growth primarily driven by growth in Fine chemical and microbial and nutrition products. The company commissioned multi-purpose agro actives and Intermediate plant and Diketene derivatives plant in Q4 FY24 and aims to invest in opportunities such as food and cosmetic grade Niacinamide and multipurpose plants.

We believe that although the company is adding multiple capacities performance and margins will continue to be impacted until international players keep on dumping at lower prices. The stock trades at 27 times FY26 earnings per share. Reiterate ‘Hold’ rating with SOTP based valuation of Rs 526.

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