JB Chemicals: BUY Signal! Rs 2100 Target Revealed by Analysts - Don't Miss This Pharma Gem!

Brokerage Reports

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Updated on 13 Nov 2025, 08:20 am

Prabhudas Lilladher has released a research report on J.B. Chemicals & Pharmaceuticals, reiterating its 'BUY' recommendation and setting a price target of Rs 2,100 per share. The firm noted that the company's adjusted EBITDA for the second quarter of fiscal year 2026 (Q2FY26) grew by 14% compared to the same period last year, which was in line with their estimates. Revenue growth across key business areas, including domestic sales and the Contract Development and Manufacturing Organization (CDMO) segment, remained healthy.

The report identifies several factors expected to drive J.B. Chemicals' continued growth. These include expanding the reach of its legacy brands into new geographical markets, improving the productivity of its Medical Representatives (MRs), scaling up operations for recently acquired brands, launching new products and therapies, and growing its contract manufacturing business. The company's strong Free Cash Flow (FCF) generation is also a positive point. Furthermore, margins are projected to improve beyond FY27, particularly after the grant of a perpetual license for its acquired ophthalmic (eye care) product portfolio.

Impact: This positive research report is likely to boost investor confidence in J.B. Chemicals & Pharmaceuticals. The reiterated 'BUY' rating and a significant price target suggest potential upside for the stock. Analysts expect an Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) of 22% over the FY25-28 period, indicating strong future earnings potential. If the company executes its growth strategies effectively, the stock price could move towards the Rs 2,100 target. Rating: 7/10

Difficult Terms Explained: * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric shows a company's operational profitability. * YoY: Year-on-Year. A comparison of a company's performance during a specific period with its performance in the same period of the previous year. * CDMO: Contract Development and Manufacturing Organization. A company that offers pharmaceutical development and manufacturing services to other drug companies on a contractual basis. * MR productivity: Medical Representative productivity. Measures how effectively sales representatives promote and sell pharmaceutical products. * FCF: Free Cash Flow. The cash generated by a company after deducting expenses, including operating costs and capital expenditures. It indicates financial flexibility. * EPS CAGR: Earnings Per Share Compound Annual Growth Rate. The average annual growth rate of a company's earnings per share over a set number of years. * CMP: Current Market Price. The current price at which a stock is trading on the stock exchange. * TP: Target Price. The price at which an analyst or investor expects a stock to trade in the future.