Blue Jet Healthcare Q1 Results Review - Logistical Delays Hit Revenue Recognition: ICICI Securities

ICICI Securities Report

Blue Jet Healthcare Ltd.’s Q1 FY25 print was marred by logistic delays which restricted revenue recognition despite sharp jump in production by almost 40-50%.

Despite inferior revenue mix, company was able to improve gross profit margin due to softening raw material prices, and benefit from additional sale in one profitable molecule.

It has rampedup capacities to support growth from three products, and sales from largest product will stabilise from Q2 FY25. BlueJet is guiding to grow revenue sharply with good new product pipeline, and expects to hold margin steady over the next two years.

We retain our estimates, which are conservative vs company’s outlook. However, our target price has been raised to Rs 600 (earlier Rs 445) as we increase FY26E PE multiple to 35 times (from 26 times). Maintain Buy.

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