JB Chemicals Q3 Results Review - Domestic Business, CMO To Drive Future Growth: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.JB Chemicals and Pharmaceuticals Ltd.’s Q3 FY24 performance was a mixed bag. Revenue missed our estimate due to lower-than-expected growth in the domestic and custom manufacturing organisation businesses. However, Ebitda margin was better than estimate on the back of softening raw material costs, lower ESOP cost and a better product mix. Revenue grew by ~7% YoY, led by double-digit growth in Domestic Formulations, largely supported by the Chronic segment and the acquired Pediatric portfolio. Ebitda margin guidance has been maintained at 25-27% (Ex-ESOPs) with bias towards the higher end of the range.JB Chemicals remains our preferred pick within pharma, mainly underpinned by aggressive growth focus in the domestic plus CMO business, high return ratios, lean balance sheet and healthy free cash flow despite acquisitions. In the domestic market, it continues to outpace industry growth with life cycle management of legacy brands and new launches. Also, strong performance of the acquired businesses is boosting overall domestic growth. Recently, the company has entered into the Ophthalmology segment with an agreement with Novartis. Growth in margin-accretive CMO business is also expected to remain strong on the back of geographical expansion and product diversification. We maintain 'Buy' on JB Chemicals with a revised target price of Rs 2,053, valuing it at 23 times Dec-25E enterprise value/Ebitda..Click on the attachment to read the full report:.Torrent Pharma Q3 Results Review - Margin Improvement Continues: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JB Chemicals Q3 Results Review - Domestic Business, CMO To Drive Future Growth: Nirmal Bang

Domestic revenue grew by 13.5% YoY to Rs 4.6 billion on the back of acquired brands, mid-teens growth in the chronic segment and recovery in the acute segment

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