Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
J B Chemicals & Pharmaceuticals
Ready to Storm the Domestic Market
J B Chem as a part of its future strategy to accelerate growth in the
domestic market, expects increased sales through key brands focus and
strengthening its presence in the rural market, it also plans to increase
its field force from 450 to around 800 by the end of this fiscal and to
2000 by end of next financial year. With these initiatives taken by the
company it is expected to clock a CAGR of 19% over FY10-13E, above
the industry growth rate of 13-15% and strengthen its position in the
domestic market.
Russian Market Continues to Add Value
J B Chem has 126 product registration application made in Russia, Ukraine
& CIS countries, while 128 products received registration in these markets
in FY10. About 130 more product registration application is planned for
submission during this fiscal. Further the company plans to launch 2-3
products in Russia every year to enable it to clock a CAGR of 14% in the
market over FY10-13E.
Row Market to See Huge Upside
J B Chem launched 14 products across the market in FY10, while 68
product registration applications were made across the RoW market,
while 9 products received registrations in these markets. About 105
more product registration application is planned for submission during
this fiscal. In addition, the company is currently marketing 3 products in
the US, during the current year 2 more ANDA’s will be commercialized,
while the company plans to file 4 ANDA’s by next year. With adequate
capacities in place, the RoW business of JB Chemicals is expected to
grow at a CAGR of 29% over FY10-13E.
Contract Manufacturing in Focus
J B Chem has entered into new contracts with British, Australian and
South African companies for supply of Lozenges, the company expects
to start the supply of the same this fiscal. The company is aggressively
exploring opportunities for new site transfers and CRAMS projects, though
the company remains conservative on the growth prospects for CRAMS.
We believe any such deals would add to the company’s future growth
prospects.
Time to Cash in on Investments Made
The company made significant investments during FY07 for expansion
of capacities, setting up a new unit at Panoli and acquisition of people.
Now with the investment phase over, JB Chemicals is set to reap the
benefits of the same through penetration in the existing markets through
new product launches and entry into new geographies.
Valuation
The stock is currently trading at attractive valuations of 7.1x and 6.1x
its FY12E and FY13E earnings respectively. Also, JB Chemicals is trading
at a discount to the average of its peers at all valuation parameter.
Though considering the lower diversification risks associated with JB
Chemicals we conservatively give a discount of 30% to the average FY13E
P/E of its peer group and value the company at 7.9x its FY13E earnings
which gives us a 15 month price target of Rs. 181.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
J B Chemicals & Pharmaceuticals
Ready to Storm the Domestic Market
J B Chem as a part of its future strategy to accelerate growth in the
domestic market, expects increased sales through key brands focus and
strengthening its presence in the rural market, it also plans to increase
its field force from 450 to around 800 by the end of this fiscal and to
2000 by end of next financial year. With these initiatives taken by the
company it is expected to clock a CAGR of 19% over FY10-13E, above
the industry growth rate of 13-15% and strengthen its position in the
domestic market.
Russian Market Continues to Add Value
J B Chem has 126 product registration application made in Russia, Ukraine
& CIS countries, while 128 products received registration in these markets
in FY10. About 130 more product registration application is planned for
submission during this fiscal. Further the company plans to launch 2-3
products in Russia every year to enable it to clock a CAGR of 14% in the
market over FY10-13E.
Row Market to See Huge Upside
J B Chem launched 14 products across the market in FY10, while 68
product registration applications were made across the RoW market,
while 9 products received registrations in these markets. About 105
more product registration application is planned for submission during
this fiscal. In addition, the company is currently marketing 3 products in
the US, during the current year 2 more ANDA’s will be commercialized,
while the company plans to file 4 ANDA’s by next year. With adequate
capacities in place, the RoW business of JB Chemicals is expected to
grow at a CAGR of 29% over FY10-13E.
Contract Manufacturing in Focus
J B Chem has entered into new contracts with British, Australian and
South African companies for supply of Lozenges, the company expects
to start the supply of the same this fiscal. The company is aggressively
exploring opportunities for new site transfers and CRAMS projects, though
the company remains conservative on the growth prospects for CRAMS.
We believe any such deals would add to the company’s future growth
prospects.
Time to Cash in on Investments Made
The company made significant investments during FY07 for expansion
of capacities, setting up a new unit at Panoli and acquisition of people.
Now with the investment phase over, JB Chemicals is set to reap the
benefits of the same through penetration in the existing markets through
new product launches and entry into new geographies.
Valuation
The stock is currently trading at attractive valuations of 7.1x and 6.1x
its FY12E and FY13E earnings respectively. Also, JB Chemicals is trading
at a discount to the average of its peers at all valuation parameter.
Though considering the lower diversification risks associated with JB
Chemicals we conservatively give a discount of 30% to the average FY13E
P/E of its peer group and value the company at 7.9x its FY13E earnings
which gives us a 15 month price target of Rs. 181.
No comments:
Post a Comment