Brokerages have a bullish view of a small-cap multibagger stock. The company has a new product pipeline. In addition, it has strong traction in the contract development and manufacturing organisation (CDMO) segment.
Jubilant Ingrevia Ltd is a part of the diversified global conglomerate, Jubilant Bhartia Group. The company has a global presence in integrated life science solutions.It got listed in March 2021 and has given multibagger returns of 102.27% since then. The company’s share price increased from ₹ 268.70 to ₹ 543.50. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares at the time of its listing, the value of their holdings would have been ₹ 2.02 lakhs.
Brokerage firm Prabhudas Lillader is bullish on the stock with a target price of ₹ 860. This translates to an upside of 58.23% as compared to the current share price of ₹ 543.50.
The company’s shares had reached a 52-week low of ₹ 401.35 apiece on March 08, this year. Since then, it has gained 35.41%. Its shares reached a 52-week high of ₹ 704.04 on October 20, 2021.
The brokerage in its report said that Jubilant Ingrevia is well-placed to capitalize on long-term growth opportunities. This is due to its new products pipeline, traction in CDMO, import substitution, China+1 policy and commensurate Capex outlay of Rs 2,050 crore over FY22-25.
Prabhudas Lilladher added that the company’s speciality chemicals (SPCM) segment will lead to earnings growth, aided by the highest capital allocation. In addition, it mentioned that the company’s earnings mix improvement led by higher value and structural growth segments will drive a rerating in the stock.
Jubilant Ingrevia is a small-cap company with a market capitalization of ₹ 8615 crores. It has an ideal return on equity of 21.89% and an ideal debt-to-equity ratio of 0.10.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
