Buy Jubilant Organosys, target Rs. 288: KRChoksey
Tuesday, 27 October 2009, 19:57 IST
By SiliconIndia
By SiliconIndia
Bangalore: With the expectation of better growth in its business, KRChoksey has recommended a buy rating on Jubilant Organosys, with a price target of Rs. 288. KRChoksey believes that Jubilant will benefit most by the robust performance in its pharmaceuticals and life sciences products and services business.
Jubilant is engaged in providing products and services to the global life sciences industry. It operates in two segments: pharmaceuticals and life sciences products and services. The brokerage expects Jubilant to show revenue growth of more than 15 percent in financial year 2010 (FY10) backed by the expanded product line and global scope of operation. Also the new product launches in radiopharma segment and new customer approvals in the contract manufacturing business would drive the revenues in the coming financial year. The company has also launched its new product Sestamibi in the third quarter of FY10 and KRChoksey expects good revenue inflow for the company from this, which would be reflected in the coming quarters.
Recently, Jubilant reported a net profit of Rs. 55.49 crore for the quarter ending September 2009, compared to a net loss of Rs. 24.39 crore in the same quarter last year. With the recommended target price if the stock is bought at Monday's closing price of Rs. 238.75, the percentage of gain would be 20.62 percent.
Jubilant is engaged in providing products and services to the global life sciences industry. It operates in two segments: pharmaceuticals and life sciences products and services. The brokerage expects Jubilant to show revenue growth of more than 15 percent in financial year 2010 (FY10) backed by the expanded product line and global scope of operation. Also the new product launches in radiopharma segment and new customer approvals in the contract manufacturing business would drive the revenues in the coming financial year. The company has also launched its new product Sestamibi in the third quarter of FY10 and KRChoksey expects good revenue inflow for the company from this, which would be reflected in the coming quarters.
Recently, Jubilant reported a net profit of Rs. 55.49 crore for the quarter ending September 2009, compared to a net loss of Rs. 24.39 crore in the same quarter last year. With the recommended target price if the stock is bought at Monday's closing price of Rs. 238.75, the percentage of gain would be 20.62 percent.
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