10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Tuesday, August 25, 2009

Jubilant Organosys Ltd:Future growth prospects and outlook

Scripscan:Jubilant Organosys Ltd
Traded in:Nse-bse

Story:Jubilant Organosys Ltd. (JOL) is an integrated pharma playerwith presence in Industrial & Performance products,manufacturing organic chemicals, specialty and finechemicals, and APIs. The company has a presence across the pharmaceutical value chain for products and services such asproprietary products, exclusive synthesis, activepharmaceutical ingredients, contract manufacturing ofsterile injectables (liquids and lyophilized) products, non-steriles (ointments, creams and liquid) andradiopharmaceuticals, drug discovery services, medicinalchemistry services, clinical research services, generic dosage form and healthcare.JOL is the only Indian company present across the CRAMS spectrum from drug discovery to manufacture ofintermediates and finished dosages for innovators. We believe that Jubilant stands to benefit significantlyfrom the trend towards increased outsourcing because of its presence across the CRAMS spectrum vis-à-visits peers, as innovators prefer to deal with fewer players.JOL has a strong order book position of USD 259 mn, USD$149mn and USD 104mn in the PLSPS, Non-Sterile and Sterile segment respectively. Besides the above it has 7 projects (Proprietary Products &Exclusive Synthesis) in the Phase III which may get commercialized in next 1-2 years. The Company is filingaround 8-10 DMFs each year and is to file 13 DMFs in FY10 and intends to increase its DMF portfolio by 3xfrom FY09-12. We expect a strong traction in revenue in the DDDS segment as an outcome of its severalcollaborations existing and new contracts.The company has shown exceptional growth over the years to transform itself from a chemical company to apharmaceutical play. The company has recorded a CAGR of 32% over the last four years in sales led by thePLSPS business. We expect the company to continue to show good growth in the future recording a CAGR of13% over the next 3 years in sales.Jubilant has been delivering steady growth in its CRAMS operation and we expect similar trend goingahead. JOL is the only Indian company that encompasses the entire spectrum in CRAMs. We thereforeexpect it to benefit from higher outsourcing to India, given its integrated services basket. The company hashinted on divesting the low margin Polymer business, which would help the company in reducing the debtlevel from current Debt/Equity levels over 3x.We value the Pharma business at 14x FY10E EPS translating to a price of Rs. 260/share, as we expect the contribution of the pharmaceutical business to increase from 72% of the total revenue to 75% in FY10 andto 78% in FY11. On the other hand we value the Industrial Chemical business at 5x FY10E translating to aprice of Rs. 37/ share. Given that the return ratios for the company is expected to show rise in future, werecommend BUY on Declines rating to the stock with a SOTP target of Rs.297.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner