The stock generates over 50 per cent of revenue from acetyls and fuel-grade ethanol, and the company planned to scale their presence in speciality chemicals (diketene derivatives, fluorochemicals and others), the brokerage said.
Jubilant Ingrevia, a leading global player of acetic anhydride, pyridine and its derivatives with other products across three business segments – Specialty Chemicals (SPCM), Nutrition and Health Solutions (NHS) and Chemical Intermediates (CI). With expertise in 35 technology platforms, the company is
steadily expanding its product portfolio by leveraging business synergies.
“We believe that a strong underlying global demand environment in agrochemicals and pharmaceuticals along with China-Plus-One tailwinds and improved prospects of CDMO (long-term contracts from leading global innovators; sticky business) will drive Jubilant Ingrevia’s high-value business EBITDA CAGR of 22 per cent over FY22-FY25E with an increase in FY25E EBITDA contribution to 67 per cent (53% in FY22),” said the brokerage.
The brokerage initiated a ‘Buy’ rating for Jubilant Ingrevia with the Target of Rs 860, an upside potential of 82 per cent from the current market price of Rs 473. The stock has fallen about 34 per cent in the last year.
As of the quarter ended June 2022, the Jhunjhunwala family held a 4.72 per cent stake in the company.