Jubilant Life Sciences - Q3FY12 Result Update - Emkay

Reco: BUY
CMP: Rs 177
Target Price: Rs 348

Debt remains a concern – Maintain Buy

- Q3FY12 Results – Revenues at Rs10.9bn (up 25%YoY), b) EBITDA at Rs2.1bn (up 58% YoY) and c) APAT at Rs771mn (up 82% YoY)

- Top-line growth and EBITDA margin expansion was led by strong traction in Generic business & favorable impact of INR depreciation, however debt increased by Rs4bn QoQ

- Going forward, new capacity additions in pyridine & vitamin business, momentum in Cadista and +ve impact of currency will boost the top-line and the bottom-line

- Strengthening INR will ease out debt concerns in next quarter – Maintain Buy with a target price of Rs348 (10xFY13E EV/EBITDA).

Source : Equity Bulls

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