Jubilant Life Sciences- Business getting back to normal– Accumulate:: Emkay

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Jubilant Life Sciences

Business getting back to normal– Maintain Accumulate

ACCUMULATE

CMP: Rs207                                        Target Price: Rs248

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n     Jubilant’s Q1FY12 numbers were above expectations with Revenues at Rs9.5bn (up 16% YoY), EBITDA at Rs1.9bn (up 32% YoY) and APAT at Rs806mn (up 17% YoY)

n     Revenue growth was mainly led by growth in API & dosage business. Margin expansion was due to milestone payment in DDDS, decline in SGA & new product launches in API

n     Commissioning of Vitamin plant and increase of Pyridine capacity by 20% in H2’12 and commissioning of Symtet plant by year end are the key positives to look forward

n     Upgrade estimates - Maintain Accumulate on the stock with a revised target price of Rs248 (9xFY13E EV/EBITDA)