Top Mutual Funds
Jubilant Pharmova Ltd
Pharmaceuticals | NSE : JUBLPHARMA
Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.
Traction in specialty pharmaceuticals and CRDMO was offset by muted numbers in CDMO sterile injectables and generics
Jubilant’s share price has de-grown by ~0.8x in the past three years (from ~₹ 439 in August 2019 to ~₹ 360 in August 2022) even after considering demerger of life science ingredients business into Jubilant Ingrevia.
Valued at ₹ 360 i.e. 13x FY24E EPS of ₹ 26.1
Apart from Jubilant, in CRAMs space we like Divi’s.
| Particulars (₹ crore) | Amount |
|---|---|
| Market Capitalization | 17,039.9 |
| Debt(FY22) | 3,192.0 |
| Cash(FY22) | 984.0 |
| EV | 7,939.0 |
| 52 week H/L (₹) | 1,309.9/526.1 |
| Equity Capital | 15.8 |
| Face Value (₹) | 1.0 |
| Particulars | FY19 | FY20 | FY21 | FY22 | 5 Year CAGR(FY17-FY22) | FY23E | FY24E | 2 Year CAGR (FY22-FY24E) |
|---|---|---|---|---|---|---|---|---|
| Revenues | 9,110.8 | 5,975.8 | 6,098.5 | 6,130.2 | 0.4 | 5,870.9 | 6,392.8 | 2.1 |
| EBITDA | 1,739.0 | 1,548.0 | 1,396.5 | 1,156.3 | -3.0 | 922.3 | 1,182.9 | 1.1 |
| EBITDA Margins (%) | 19.1 | 25.9 | 22.9 | 18.9 | - | 15.7 | 18.5 | - |
| Adjusted Net Profit | 854.7 | 710.7 | 595.3 | 413.9 | -6.4 | 253.0 | 416.2 | 0.3 |
| Reported EPS (|) | 36.9 | 42.6 | 36.0 | 26.0 | - | 15.9 | 26.1 | - |
| Adjusted EPS (|) | 54.9 | 44.6 | 37.4 | 26.0 | - | 15.9 | 26.1 | - |
| PE (x) | 11.0 | 9.5 | 11.2 | 15.6 | - | 22.7 | 13.8 | - |
| Target P/E (Diluted) | 11.1 | 9.6 | 11.4 | 15.8 | - | 21.4 | 13.0 | - |
| EV/EBITDA (x) | 5.6 | 6.4 | 6.2 | 7.5 | - | 8.7 | 6.6 | - |
| Price to book (x) | 1.3 | 1.2 | 1.4 | 1.2 | - | 1.0 | 1.0 | - |
| RoE (%) | 17.8 | 12.7 | 12.6 | 7.8 | - | 4.6 | 7.0 | - |
| RoCE (%) | 14.3 | 11.7 | 13.7 | 9.0 | - | 6.1 | 8.6 | - |
Q1FY23 earnings conference call highlights
| Q1FY23 | Q1FY22 | Q4FY22 | YoY (%) | QoQ (%) | Comments | ||
| Revenue | 1,451.7 | 1,634.7 | 1,527.5 | -11.2 | -5.0 | YoY decline due to poor show in CDMO Sterile Injectables and Generics | |
| Raw Material Expenses | 387.0 | 360.6 | 414.8 | 7.3 | -6.7 | ||
| Gross margins (%) | 73.3 | 77.9 | 72.8 | -460 bps | 49 bps | ||
| Employee Expenses | 529.2 | 499.2 | 510.4 | 6.0 | 3.7 | ||
| Other Expenditure | 343.2 | 370.9 | 355.1 | -7.5 | -3.4 | ||
| Total Expenditure | 1,259.3 | 1,259.4 | 1,280.2 | 0.0 | -1.6 | ||
| EBITDA | 192.4 | 375.2 | 247.4 | -48.7 | -22.2 | ||
| EBITDA (%) | 13.3 | 23.0 | 16.2 | -970 bps | -294 bps | EBITDA margins Generics: -41%, CRDMO: 16.3%, CDMO Sterile Injectable:50% and Specialty Pharmaceutical:16.2% | |
| Interest | 39.9 | 34.6 | 39.5 | 15.3 | 1.1 | ||
| Depreciation | 94.6 | 88.0 | 100.6 | 7.4 | -5.9 | ||
| Other income | 11.3 | 3.9 | -3.0 | 190.7 | LP | ||
| Exceptional Items | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
| PBT after Exceptional Items | 69.2 | 256.5 | 104.3 | -73.0 | -33.7 | ||
| Tax | 22.3 | 86.0 | 46.6 | -74.1 | -52.1 | ||
| Tax Rate (%) | 32.2 | 33.5 | 44.6 | ||||
| PAT before MI | 46.9 | 170.5 | 57.8 | -72.5 | -18.8 | ||
| MI | -0.3 | -0.1 | -0.5 | NA | NA | ||
| Adj. Net Profit | 47.0 | 160.6 | 59.6 | -70.7 | -21.0 | ||
| Key Metrics | |||||||
| Generics | 178.0 | 432.0 | 221.0 | -58.8 | -19.5 | YoY decline due to 1) lower volumes due to import alert at Roorkee plant, 2) pricing pressure in the US market and 3) lower Remdesivir sales | |
| Specialty Pharma | 722.0 | 632.0 | 695.0 | 14.2 | 3.9 | Radiopharmaceuticals business witnessed improvement in sales driven by recovery from easing of Covid-19 pandemic. Radiopharmacies business witnessed growth YoY due to higher volumes led by recovery from Covid-19 and launch of new products. Allergy Immunotherapy continues to operate at volumes higher than pre-Covid levels | |
| CDMO Sterile Injectables | 263.0 | 373.0 | 288.0 | -29.5 | -8.7 | YoY decline due to higher Covid related business during the previous quarters. Covid related deals of | 70 crore vs. | 220 crore in Q1FY22 and | 11 crore in Q4FY22 | |
| CRDMO | 280.0 | 193.0 | 318.0 | 45.1 | -11.9 | Drug Discovery Services revenue increased amid higher demand from Biotech companies for integrated services, functional chemistry and DMPK. Chemistry volume increase supported by the Greater Noida facility. CDMO – API revenue grew YoY due to higher volumes |
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