IIFL Securities Stock Idea: Buy Jubilant Ingrevia with Target Rs 645

IIFL Securities has initiated a buy call on Jubilant Ingrevia, setting a target price of Rs 645. The current market price of the stock is Rs 623.5. The brokerage firm believes that the company's recent acquisition of a specialty chemicals business will drive growth and margin expansion in the future. They also expect the company to benefit from a recovery in the pharmaceutical and agrochemical markets.

About Jubilant Ingrevia:

Jubilant Ingrevia Limited, formerly known as Jubilant Life Sciences, is a global pharmaceutical company headquartered in Bengaluru, India. It is engaged in the development, manufacture, and distribution of pharmaceuticals, life science ingredients, and specialty chemicals. The company has a global presence with operations in over 24 countries. Jubilant Ingrevia's product portfolio includes pharmaceuticals, generic drugs, active pharmaceutical ingredients (APIs), and excipients. The company also provides contract research and manufacturing services (CRAMS) to other pharmaceutical companies. Jubilant Ingrevia is listed on the National Stock Exchange of India (NSE) and is a part of the Jubilant Bhartia Group.

52 Week Price Trend:

Jubilant Ingrevia, a specialty chemicals company, is currently trading at Rs 623.5. This reflects a significant appreciation from its 52-week low of Rs 350.45, indicating a strong bullish sentiment in the market. However, the stock is still below its 52-week high of Rs 524.7, suggesting that there may be further room for growth. Investors should carefully consider the company's financials, market conditions, and future prospects before making any investment decisions.

Stratzy's MOST Analysis:

Jubilant Ingrevia (JUBLINGREA) has been assigned a BB- rating using Stratzy's MOST framework. This framework assesses stocks based on management, outlook, safety, and trend. A BB- rating indicates medium fundamental risks, suggesting areas of improvement. JUBLINGREA's management governance, growth prospects, financial health, and market trend are all considered moderately risky, requiring further evaluation before making investment decisions.

Company's Fundamentals:

Jubilant Ingrevia (NSE: JUBLINGREA) is a company that displays a moderate valuation with a Stock PE of 37.66. This indicates that investors are willing to pay a premium for each rupee of earnings. The PB Ratio of 2.87 suggests that the company's market value is 2.87 times its book value, implying that investors believe the company has assets in excess of its liabilities. Despite these valuations, Jubilant Ingrevia provides a modest Dividend Yield of 1.03%, indicating that investors may prioritize capital appreciation over dividend income from this stock.

Fundamental and Technical information provided in this blog were last updated on 27 Jul, 2024

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