Buy Jubilant Pharmova, target price Rs 695: IIFL Securities

IIFL Securities recommends buying Jubilant Pharmova shares, citing a target price of Rs 695. The brokerage firm believes the company will benefit from its strong presence in the specialty pharmaceuticals market and its focus on research and development. Jubilant Pharmova's current market price is Rs 673, representing a potential upside of 3.2% based on IIFL's target. The company's performance has been driven by its robust product portfolio, international expansion, and cost-optimization initiatives.

About Jubilant Pharmova:

Jubilant Pharmova Ltd. is an integrated pharmaceutical and life sciences company listed on the National Stock Exchange (NSE) of India. The company operates in various segments, including Pharmaceuticals, Life Science Chemicals, and Contract Research and Development Services. Jubilant Pharmova's pharmaceutical business produces generic and branded formulations, active pharmaceutical ingredients (APIs), and drug intermediates. Its Life Science Chemicals segment manufactures specialty chemicals used in the pharmaceutical, agrochemical, and personal care industries. The company's Contract Research and Development Services segment provides research and development services to the pharmaceutical and biotechnology industries.

52 Week Price Trend:

Jubilant Pharmova's current share price of Rs 673.5 indicates a significant gain from its 52-week low of Rs 268.8. Although the stock has yet to surpass its 52-week high of Rs 627.45, it has consistently traded within a range, suggesting potential upside. Investors may consider buying at current levels for potential growth, with a target price above the 52-week high and a stop loss below the recent support zone. However, it is crucial to note that the stock may face resistance at higher levels, so careful monitoring and risk management are advised.

Stratzy's MOST Analysis:

Jubilant Pharmova received a BB- rating from Stratzy's MOST framework, indicating Medium Fundamental Risks. This assessment is based on an evaluation of the company's Management, Outlook, Safety, and Trend. The rating suggests that while the company may face some challenges in these areas, it generally exhibits a moderate level of stability and growth potential. However, investors should be mindful of potential risks and conduct thorough due diligence before making investment decisions.

Company's Fundamentals:

Jubilant Pharmova (NSE:JUBLPHARMA) is a pharmaceutical company listed on the National Stock Exchange (NSE) of India. As of the latest available data, its stock has a price-to-earnings (PE) ratio of 250.88, a price-to-book (PB) ratio of 1.7, and a dividend yield of 0.87%. The PE ratio of 250.88 indicates that the company's shares are relatively expensive compared to its earnings, while the PB ratio of 1.7 suggests that its shares are moderately undervalued compared to the value of its assets. The dividend yield of 0.87% indicates that the company pays a modest dividend to its shareholders.

Fundamental and Technical information provided in this blog were last updated on 18 Apr, 2024

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