1 day Ago By Motilal Oswal Financial Services
Known for its advanced R&D capabilities, backward integration, and focus on complex chemistries, Blue Jet Healthcare is at the forefront of delivering high-value solutions in regulated and emerging markets. The company’s focus on innovation, quality, and sustainability has positioned it as a key enabler in high-growth therapeutic areas such as cardiovascular, oncology, Central Nervous System, and diagnostic imaging.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies.
These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. Motilal Oswal ReportBlue Jet Healthcare Ltd.’S revenue growth will be driven by new products in iodinated and gadolinium contrast media, new chemical entity intermediates, and a high-intensity sweetener variant.
The PI/API segment is also set for strong growth, with ramp up in supplies for Esperion’s Bempedoic acid in coming quarters.The company also recently commissioned Plant 6 at Unit 2 (Ambernath) with an investment of Rs 900 million, adding 120KL capacity for PI and contrast media. It also started a cardiovascular PI production in mid-Sep’24, expanded R&D into advanced platforms, and bolstered talent for CDMO growth.
We expect a CAGR of 27%/24%/19% in revenue/Ebitda/PAT during FY25-27E, with an expected average Ebitdam of 35.1% during FY25-27E. We expect average RoE/RoCE of ~28%/26% during FY25-27E with an average fixed asset turnover of 3.
1x. We expect free cash flow generation of Rs 3.6 billion during FY25-27E with cumulative capex of Rs 5 billion.
The stock is trading at a P/E of ~28x on FY27E EPS of Rs 24.7 and FY27E EV/Ebitda of ~20x. We initiate coverage on Blue Jet Healthcare with a Buy rating and a target price of Rs 865, valuing the company at a P/E of 35x on FY27E EPS of Rs 24.
7. Downside risks include high product and customer concentration, delays in new product ramp-up, and lower margin. Upside risks include a faster ramp-up of high-margin products and increased long-term contracts that could boost growth and valuations.
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