The recommendation follows the announcement that KKR has entered into a definitive agreement to acquire controlling stake in the company.
ThinkStock Photos
IIFL Securities has a buy rating on JB Chemicals & Pharmaceuticals with a target price of Rs 770. Shares of JB Chemicals ended up 0.4 per cent at Rs 718.05 on Friday while the BSE sensex closed 177.72 points up (+0.50 per cent) at 36,021.42.
J B Chemicals & Pharmaceuticals Ltd, incorporated in 1976, has a market cap of Rs 5553.88 crore.
Investment Rationale
The recommendation follows the announcement that KKR has entered into a definitive agreement to acquire controlling stake in the company. While JB Chemicals has, so far, largely focussed on growing its India formulations business with very minimal investments in the export business, the strategic direction which KKR adopts will be the key, said IIFL.
Quarterly Results
Source: ETMarkets.com
Financials
For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 443.57 crore, up 3.48 per cent from last quarter sales of Rs 428.63 crore and up 5.89 per cent from last year same quarter sales of Rs 418.92 crore. The company reported net profit after tax of Rs 50.07 crore in the latest quarter.
Promoter/FII Holdings
Promoters held 55.91 per cent stake in the company as of March 31, 2020, while FIIs held 7.18 per cent, DIIs 14.35 per cent and public and other 22.35 per cent.
ThinkStock Photos
Get Unlimited Access to The Economic Times
