India's J B Chemicals and Pharma tops Q1 profit view on domestic business strength

J B Chemicals and Pharmaceuticals

08/08/2024 13:27

BENGALURU, Aug 8 (Reuters) - India's J B Chemicals and Pharmaceuticals  JBCH.NS  beat first-quarter profit
estimates on Thursday, helped by growth in its domestic business. 
    The company's consolidated net profit rose 24.2% to 1.77 billion rupees ($21.1 million) for the quarter ended
June, beating analysts' estimate of 1.65 billion rupees. 
        Consolidated revenue jumped 12% to 10.04 billion rupees due to a 22% growth in the company's domestic
business, but fell short of expectations of 10.16 billion rupees.
  
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JV1C1
    
KEY CONTEXT 
    
    This is Mumbai-based J B Chemicals' eighth straight quarter of higher profit. The company, which makes acid
reflux drug 'Rantac', continues to benefit from buoyant demand for its copycat drugs, such as antibiotic drug
'Metrogyl', and lozenges for sore throats. 
    New launches across its portfolio are expected to further spur growth for the domestic business, analysts said.
The share of the domestic business in overall revenue has been growing and stood at 54% for fiscal year 2024.
    Cipla  CIPL.NS  and Sun Pharma  SUN.NS  - its larger peers in the generics business - both topped first-quarter
profit estimates on the back of resilient sales in India and the U.S. - a key market for local drugmakers.  
    
PEER COMPARISON 
    
                                 Valuation (next 12   Estimates (next 12         Analysts' sentiment        
                                      months)              months)                                          
                      RIC        PE       EV/EBITDA  Revenue     Profit    Mean     # of     Stock to       Div
                                                     growth %    growth %  rating*  analyst  price          yield
                                                                                    s        target**       (%)
 J B Chemicals and     JBCH.NS     40.25      25.61    14.81      22.66    BUY           10      1.01           0.53
 Pharmaceuticals Ltd                                                                                        
 Cipla Ltd             CIPL.NS     25.53      15.91     8.88       9.88    HOLD          31      0.96           0.86
 Sun Pharmaceutical    SUN.NS      34.97      25.75    10.26      13.39    BUY           31      0.99           0.78
 Industries Ltd                                                                                             
 Dr Reddy's            REDY.NS     19.60      12.32    10.36       3.34    HOLD          33      1.04           0.59
 Laboratories Ltd                                                                                           
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
APRIL-JUNE STOCK PERFORMANCE 
    
    
-- All data from LSEG IBES

-- $1 = 83.9280 Indian rupees
 

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JBCH Q1 vs peers    https://tmsnrt.rs/3WBJDfm
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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))