Buy Jubilant Life Sciences, target price Rs 855: Motilal Oswal

Motilal Oswal has given a buy rating to Jubilant Life Sciences with a target price of Rs 855. The share price moved down by 1.55 per cent from its previous close of Rs 706.70. The stock’s last traded price is Rs 696.75.

Jubilant Life Sciences Ltd., incorporated in the year 1978, is a Mid Cap company (having a market cap of Rs 10981.64 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2326.36 Crore, up 26.07 % from last quarter Sales of Rs 1845.24 Crore and up 4.02 % from last year same quarter Sales of Rs 2236.55 Crore Company reported net profit after tax of Rs 224.12 Crore in latest quarter.

Investment Rationale
The brokerage remains positive on JLS on the back of a) a strong order book for the CMO/API segment, b) the completion of remediation measures at Roorkee, c) favorable pricing in specialty intermediates / nutritional products, and d) a better outlook for the Life Science Chemical segment.

Promoter/FII Holdings
Promoters held 50.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 26.1 per cent, DIIs 1.1 per cent and public and others 22.2 per cent.