Jubilant Life Sciences - In-line with expectations - Maintain Buy - Emkay

Q2FY13 Results, in-line with expectations - Revenues at Rs12.3bn (up 17%YoY), b) EBITDA at Rs2.6bn (up 9% YoY) and c) APAT at Rs1025mn (down 13% YoY)

- Top-line growth was led by 18% growth in pharma biz & 15% growth in ingredients biz. Margins pressure in Ingredients biz led to EBITDA margin contraction by 142bps YoY to 21%

- 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 7xFY14E EPS & 6x 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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