Jubilant Pharmova - Strong CDMO, Radiopharma Businesses; Undemanding Valuation: Nirmal Bang

Nirmal Bang Report

We interacted with the management of Jubilant Pharmova Ltd. to get an overview of the current business environment and growth opportunities in the company’s different business verticals.

As per the management, the radiopharma business is back to pre-Covid level and is expected to grow in double digits from FY24 with new launches and ramp-up in Ruby-fill. The Radiopharmacy business’ margin is also expected to improve from hereon and is expected to reach breakeven by the end of FY24.

The allergy business continues to witness double-digit growth with healthy margins. The generic business continues to face headwinds on account of steep pricing pressure, but its margin is expected to improve sequentially with product rationalisation and new launches.

In the contract development and manufacturing organisation sterile injectables business, the management expects double-digit growth FY24 onwards, owing to strong order book position and capacity addition.

We like the company due to its strong CDMO and radiopharma businesses as well as undemanding valuation.

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