Emkay on JB Chemicals & Pharma - Turnaround of domestic business to fuel growth

JB Chemicals & Pharma

Turnaround of domestic business to fuel growth

NOT RATED

CMP: Rs 108                                       Target Price: NR

---

n     Russia/CIS business to act as JBCPL’s  cash cow for funding its domestic expansion

n     Higher thrust on the domestic business by way of increasing doctor coverage to contribute to top line as well as bottom line, going forward; Committed to grow domestic business by 3x in next 3-4 years

n     Higher receivables in the Russia/CIS business not a concern as they are qualitatively sound

n     22-25% earnings CAGR over FY10-12E; Ideal candidate for re-rating