Buy Jubilant Lifesciences - Emkay

Reco: BUY
CMP: Rs 172
Target Price: Rs 340

Robust Performance Continues - Buy

- Q1FY13 Results, above expectations - Revenues at Rs12.4bn (up 31%YoY), b) EBITDA at Rs2.7bn (up 47% YoY) and c) APAT at Rs1093mn (up 36% YoY)

- Top-line growth and EBITDA margin expansion was led by 45% growth in pharma biz & 18% growth in ingredients biz. Favorable impact of INR dep was at 8% in the top-line growth

- Going forward, company has guided for top-line CAGR of 20% for FY12-FY15 on back of strong growth in pharma biz and increased capacity utilization in the ingredients biz.

- Stock is trading at attractive valuations of 5xFY14E EPS & 5x FY14E EV/EBITDA and with earnings CAGR of 26% over FY12-14E, we maintain Buy with a target price of Rs340.

Source : Equity Bulls

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