The IIFL Securities Report: Buy Jubilant Ingrevia - December 11

On December 11, IIFL Securities recommended buying Jubilant Ingrevia shares with a target price of Rs 855, indicating a potential upside of 2.6% from its current market price of Rs 833.65. The brokerage firm is positive on the company's growth prospects, citing factors such as strong demand for its specialty chemicals and pharmaceuticals products, as well as its efforts to expand its global reach.

About Jubilant Ingrevia:

Jubilant Ingrevia Limited is a global leader in the specialty chemicals industry, headquartered in Mumbai, India. It is a part of the Jubilant Bhartia Group, a diversified conglomerate with over 40 years of experience. The company manufactures and supplies a broad portfolio of high-value specialty chemicals, including pyridine and its derivatives, ethyl acetate, propionic acid, and acid chlorides. Jubilant Ingrevia serves a wide range of industries, including pharmaceuticals, agrochemicals, personal care, food, and electronics. With state-of-the-art manufacturing facilities in India, the Netherlands, the United States, and Canada, the company has a global footprint and a strong focus on innovation and sustainability.

52 Week Price Trend:

Currently trading at Rs 833.65, Jubilant Ingrevia's stock has exhibited a remarkable surge of over 98% from its 52-week low of Rs 420. While it has marginally dipped below its 52-week high of Rs 837, the stock's strong performance reflects the company's continued growth and consistent financial results. Jubilant Ingrevia's focus on specialty chemicals, life science ingredients, and nutritional products has positioned it well in the market, contributing to its recent stock price rally.

Stratzy's MOST Analysis:

Jubilant Ingrevia has received a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating is derived from an assessment of the company's management (B), outlook (B), safety (BB), and trend (BB). While the company exhibits strengths in certain areas, the lower scores in management and safety suggest potential weaknesses that investors should consider when evaluating the stock.

Company's Fundamentals:

Jubilant Ingrevia (NSE: JUBLINGREA) is a specialty chemicals company with a current stock price-to-earnings (PE) ratio of 69.62, indicating that its stock price is relatively high compared to its earnings. The price-to-book (PB) ratio of 4.34 suggests that the company's stock price is trading at a premium to its book value. However, despite these higher valuations, Jubilant Ingrevia offers a dividend yield of 0.65%, providing investors with a potential source of income.

Fundamental and Technical information provided in this blog were last updated on 11 Dec, 2024

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