India's JB Chem and Pharma meets Q3 profit view on steady domestic demand

J B Chemicals and Pharmaceuticals

04/02/2025 14:07

Feb 4 (Reuters) - 
    India's J B Chemicals & Pharmaceuticals  JBCH.NS  reported a bigger third-quarter profit on Tuesday, helped by
sustained domestic demand for its drugs for chronic and acute conditions.
  
    The drugmaker's consolidated net profit rose 22% from a year ago to 1.62 billion rupees ($18.6 million) in the
quarter, in line with analysts' average estimate, as per data compiled by LSEG.
    Its revenue climbed 14% to 9.63 billion rupees.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3OV1BL.
    
    KEY CONTEXT
    The company continued to benefit from strong demand for its drugs to treat long-term illnesses such as
hypertension as well as for its gastrointestinal medications including Sporlac and Metrogyl. 
    The domestic formulations business accounts for about 60% of the drugmaker's total revenue. Revenue in this
segment registered a growth of 22% in the quarter.
    Moreover, a 33% rise in its contract drugs manufacturing business drove its international formulations business 4%
higher, further boosting profit, the company said. 
    
    PEER COMPARISON
    
                                                        Estimates (next 12        Analysts' sentiment         
                                                             months)                                          
                      RIC        PE     EV/EBI  Price/  Revenue   Profit    Mean     # of      Stock to       Div
                                        TDA     Sales   growth    growth    rating*  analysts  price          yield
                                                        (%)       (%)                          target**       (%)
 J B Chemicals and     JBCH.NS   33.88   22.07    5.68   12.91     19.56    Buy            11      0.83           0.69
 Pharmaceuticals                                                                                              
 Sun Pharmaceutical    SUN.NS    32.22   24.00    6.20   10.42     15.73    Buy            33      0.85           0.89
 Industries                                                                                                   
 Cipla                 CIPL.NS   22.94   14.46    3.57    8.20      5.96    Buy            33      0.88           0.88
 Dr Reddy's            REDY.NS   17.20   10.77    3.07   10.17      6.15    Hold           35      0.90           0.66
 Laboratories                                                                                                 
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
        
  
        OCTOBER TO DECEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 87.0640 Indian rupees 

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))