Shares of specialty chemicals firm Jubilant Ingrevia have surged 37% from their 52-week low this year. Jubilant Ingrevia shares hit a 52-week low of Rs 401.35 on March 8, 2022. Since then, the stock has gained 37.65% or Rs 151 till date. The stock was trading at Rs 552 on BSE today. Jubilant Ingrevia shares have fallen after three days of consecutive gain. The shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. It has lost 4.61% in one year and fallen 4% in 2022.
Market cap of the firm stood at Rs 8,796 crore in the afternoon session today. The firm reported a 23.93% fall in Q2 profit at Rs 84.28 crore against a profit of Rs 110.79 crore in the second quarter of the previous fiscal. Total income rose to Rs 1,310.87 crore in the September quarter against Rs 1229.53 crore in Q2 of the lat fiscal.
The company reported a net profit of Rs 163.66 crore for the first half ended September 30, 2022 against net profit of Rs 279.05 crore for the six months ended September 30, 2021.
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Angel One sees a 30% upside in the Jubilant Ingrevia stock with a target of Rs 700. The market price when the ‘buy’ recommendation was made was Rs 540.
Angel One said, “The company derives 56% of its revenues from the life science chemicals division while the specialty chemicals and nutrition & health solution business account for 28% and 15% of revenues respectively. At current levels, the stock was trading at P/E multiple of 13.5xFY24 EPS, which is at a significant discount to other chemical companies. Therefore, we believe that there is value in the stock at current levels and hence rate it a BUY.”
Jubilant Ingrevia was formed by spinning off the chemical and life science ingredients of Jubilant Life Sciences Ltd. The company has a vast array of products across its three divisions and is one of the top two producers of Pyridine – Beta and vitamin B3 globally.
