JB Chemicals Management Meet Update - Remains Poised For Strong Growth In The Domestic Market: Nirmal Bang

Nirmal Bang Report

We hosted the management of JB Chemicals and Pharmaceuticals Ltd. at our Annual Investors’ Conference to discuss the company’s business outlook.

The management has guided for ~Rs 30 billion revenue for FY23 (Rs 23.9 billion in nine months-FY23). For FY24, it expects gross margin to improve to 63.5-64% with Ebitda margin in the vicinity of ~25.5- 26%.

JB Chemicals remains poised for strong growth in the domestic market, which will be driven by growth in the base business and integration of acquisitions.

The company expects strong visibility in the Lozenges contract manufacturing organisation business as it looks to add new products and partners in due course.

In the U.S. market, it will focus on niche products and the company will remain conservative in its efforts, so as not to over invest.

JB Chemicals remains our preferred pick, mainly underpinned by aggressive growth focus in the domestic market, high return ratios and healthy free cash flow despite acquisitions.

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