The IIFL Securities Report: Buy Jubilant Ingrevia

IIFL Securities has recommended a buy call on Jubilant Ingrevia, with a target price of Rs 628. The current market price of the stock is Rs 608.85, highlighting a potential upside of 3.13%. Jubilant Ingrevia is expected to benefit from strong demand for its specialty chemicals, supported by a favorable end-market outlook. The company's strategic investments in capacity expansion and product portfolio diversification are expected to drive future growth.

About Jubilant Ingrevia:

Jubilant Ingrevia Limited, a subsidiary of Jubilant Pharmova Limited, is a leading life sciences and specialty chemicals company in India. It manufactures and supplies a wide range of products, including active pharmaceutical ingredients, nutritional products, specialty chemicals, and intermediates. The company has a global presence with manufacturing facilities in India, the US, Canada, and China. Jubilant Ingrevia's products are used in various industries, including pharmaceuticals, food and beverages, personal care, and agriculture. The company is committed to innovation and sustainability, and it invests heavily in research and development to develop new products and processes that meet the evolving needs of its customers.

52 Week Price Trend:

Jubilant Ingrevia (NSE: JUBLINGREA) has exhibited significant price movement over the past year, with a 52-week high of Rs 524.7 and a low of Rs 350.45. Currently trading at Rs 608.85, the stock has appreciated by approximately 16.2% from its 52-week low. This appreciation suggests positive market sentiment and expectations for the company's future performance. However, it is crucial to note that stock prices can fluctuate significantly, and investors should carefully assess the company's fundamentals and market trends before making any investment decisions.

Stratzy's MOST Analysis:

JUBLINGREA holds a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating is derived from assessing the company's management, outlook, safety, and trend. The framework considers the effectiveness of the management team, the company's long-term growth prospects, its financial stability, and the industry and market trends it operates in. Overall, JUBLINGREA faces moderate concerns in these areas, which contribute to its medium risk profile.

Company's Fundamentals:

Jubilant Ingrevia (NSE: JUBLINGREA) is a specialty chemicals company with a moderate valuation. Its Stock PE ratio of 37.66 suggests that it is trading at a higher multiple of its earnings compared to industry peers. The Price-to-Book (PB) Ratio of 2.87 indicates that the company's market value is nearly three times its book value, suggesting potential overvaluation. However, the company offers a decent Dividend Yield of 1.03%, providing investors with a source of passive income.

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

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