Archive · 13 Jun 2025
Brokerage Retains Hold Rating on Jubilant Ingrevia
Jubilant Ingrevia makes chemicals used in farming.
They're becoming a company that manufactures chemicals for others, called CDMO.
They've signed contracts, including one worth $300 million.
More chemicals are going off-patent, which means others can make them too.
While this might help increase sales, it might also lower profits.
Analysts think the stock is okay to hold but not to buy right now.
Jubilant Ingrevia is a leading Indian supplier of chemical intermediates to agrochemical innovators.
The company is transitioning to become a CDMO player and has signed contracts.
Seven more pyridine chemistry molecules are expected to go off-patent by 2028.
Entry into CDMO will boost revenue, but profitability and RoCE are uncertain.
Retain Hold rating with a revised target price of ₹713.
- Who
- Broker evaluating Jubilant Ingrevia.
- What
- Brokerage report on Jubilant Ingrevia.
- When
- Published on June 13, 2025.
- Where
- India
- Why
- To provide an updated outlook on the stock.
Positive Factors
Negative Factors
CDMO Transition
Positive Factors
Jubilant Ingrevia is transitioning to CDMO which will increase its revenue.
Negative Factors
Uncertainty about profitability and RoCE from the CDMO contracts.
- Company
- Jubilant Ingrevia
- Industry
- Chemical Intermediates/CDMO
- Rating
- Hold
- Target Price
- ₹713
- CMP
- ₹793.15
- CDMO Contract
- $300 million
- FY27E EPS
- 34x
- FY27 EV/EBITDA
- 17x