Jubilant Pharmova Q3 Results Review - Decent Margin Improvement; Topline Disappoints: 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.Jubilant Pharmova Ltd.'s Q3 FY24 results missed our estimates on both revenue as well as margin front on account of weak performance in contract research, development and manufacturing organisation and generic businesses.Strong double-digit sales growth was witnessed in radio pharmacy and allergy businesses. The radio pharmacy business continued to scale up and the company has reiterated its guidance to achieve Ebitda margin in mid-single digit over the medium term.Jubilant Pharmova has sold its entire stake in Sofie Biosciences for ~$140 million, we believe that company will use this to reduce the debt burden. For one or the other reasons, the company has consistently disappointed on margins and profitability in the past. Hence, stability across businesses is a must to re-rate the stock.However, we maintain our 'Accumulate' with a target price of Rs 570 due to valuation comfort (trading at 15 times December 25E earning per share and multiple drivers for improving margins as well as growth..Click on the attachment to read the full report:.SBI Q3 Results Review - Loan Growth Momentum Intact, Pension Blip Impacts Net Profit: Axis Securities.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."

Jubilant Pharmova Q3 Results Review - Decent Margin Improvement; Topline Disappoints: Nirmal Bang

We have increased our price earning multiple to 15 as we are expecting the debt to come down due to Sofie stake sale and better-than-expected margins.

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Jubilant Pharmova Q3 Results Review - Decent Margin Improvement; Topline Disappoints: Nirmal Bang

We have increased our price earning multiple to 15 as we are expecting the debt to come down due to Sofie stake sale and better-than-expected margins.

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