(Reuters) – India’s J B Chemicals & Pharmaceuticals 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.
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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 33.88 22.07 5.68 12.91 19.56 Buy 11 0.83 0.69
Pharmaceuticals
Sun Pharmaceutical 32.22 24.00 6.20 10.42 15.73 Buy 33 0.85 0.89
Industries
Cipla 22.94 14.46 3.57 8.20 5.96 Buy 33 0.88 0.88
Dr Reddy’s 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
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)
