JB Chemicals’ revenues grew by 9% YoY to Rs 11 billion, in line with our estimates. Domestic formulation delivered double digit growth of 14% YoY to Rs 6.8 billion. Opthal portfolio from Novartis delivered Rs 570 million in revenues.
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JB Chemicals and Pharmaceuticals Ltd.’s Q1 FY26 adjusted Ebitda growth of 13% YoY for one offs and ESOP was 3% above our estimates.
Revenue growth across key segments (domestic and contract development and manufacturing organisation) was healthy during the quarter. We believe JB Chemicals growth momentum to continue driven by-
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geographical expansion of legacy brands,
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improvement in MR productivituy,
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scale up in acquired brands,
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launch of new products and therapies,
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scaling up contract manufacturing business and
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strong free cash flow generation.
Further margins will continue to improve beyond FY27 with grant of perpetual license of acquired opthal portfolio.
Our FY26E/27E EPS remains unchanged. We expect EPS CAGR of 22% over FY25-27E. At current market price, the stock is trading at 28x FY27E EPS. We maintain ‘Buy’ rating with target price of Rs 2,030/share, valuing at 32x FY27E earnings per share.
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