JB Chemicals - Poised For A Multi-Year Growth Trajectory: Nirmal Bang Initiates Coverage
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Nirmal Bang Report
JB Chemicals and Pharmaceuticals Ltd. is one of the fastest-growing top 30 domestic branded formulations companies in India. The domestic brand business (48% of sales in H1 FY22) comprises four mega brands (Cilacar, Nicardia, Rantac and Metrogyl), which contribute more than 80% to domestic brand sales.
Export Formulations business, which is 35% of total sales, is split between USA, Russia, South Africa and Rest of World markets. There is large headroom for JB Chemicals to scale up in these geographies considering the small base there.
In South Africa and Russia, the company has front-end branded presence. Contract manufacturing of pharmaceutical lozenges, wherein the company is among the top five globally, is 10% of revenue and capacities are only 50% utilised.
The rest of the revenue pie is the active pharma ingredient segment, which is partly used in backward integration while the remaining is sold domestically or exported to regulated markets.
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