One of the small-cap stocks specializing in life science products and innovative solutions, primarily engaged in three main business segments such as specialty chemicals, nutrition and health solutions, and chemical intermediates. The stock jumped 3.07 percent after the acquisition of a 6.67% equity stake in Forum I Aviation Private Limited
Stock Price Movement:
In Thursday’s trading session, Jubilant Ingrevia Limited’s share jumped to an intraday high of 3.07 percent from the previous close of Rs. 810.60. The stock opened at Rs. 819.80 and is currently trading at Rs. 826.35 with a high of Rs. 835.50 and a low of Rs. 811.50. The market capitalization now stands at approximately Rs. 11,174.75 crore.
What Happened:
Jubilant Infrastructure Limited (JIL), a wholly-owned subsidiary of Jubilant Ingrevia Limited, has approved the acquisition of a 6.67% equity stake in Forum I Aviation Private Limited (FAPL) from Hero Fincorp Limited and Mr. Sunil Kant Munjal.
After the transaction, Jubilant Infrastructure Limited will hold a 15.79% stake in Forum I Aviation Private Limited, a non-scheduled air transport company with a revenue of Rs. 2,732.00 lakh in FY 23-24. The acquisition is expected to be completed within this financial year.
CAPEX Plans:
Jubilant Ingrevia Limited’s long-term CAPEX plans are progressing as expected, with continued investments in food and cosmetic-grade products. The company anticipates an annual CAPEX of Rs. 600 to Rs. 800 crore over the next three years, focusing primarily on the specialty chemical and nutrition segments.
Future Outlook:
Jubilant Ingrevia Limited expects improved business performance in FY25, particularly in the specialty chemical and nutrition segments. The company focuses on customer centricity and operational efficiency to enhance margins, with sequential improvement in Q3 and Q4.
The company is committed to its “Pinnacle 345” vision, aiming for three times revenue and four times EBITDA in the next five years.
New Developments:
Jubilant Ingrevia Limited signed a five-year agreement with a multinational agro innovator to produce a key intermediate for a strategic agrochemical, expecting significant revenue growth.
The company’s Bharuch facility was recognized as a Global Manufacturing Lighthouse by the World Economic Forum for its digital transformation and improved efficiency.
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Recent quarter results and ratios:
Jubilant Ingrevia Limited’s revenue has increased from Rs. 1,020 crore in Q2 FY24 to Rs. 1,045 crore in Q2 FY25, which has grown by 2.45 percent. The net profit of Jubilant Ingrevia Limited has also grown by 3.51 percent from Rs. 57 crore in Q2 FY24 to Rs. 59 crore in Q2 FY25.
Jubilant Ingrevia Limited’s revenue and net profit have grown at a CAGR of 82.18 percent and 50.21 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 9.97 percent and 6.93 percent, respectively. The debt-to-equity ratio of the company is to be 0.26x, which shows the company is almost debt-free. Jubilant Ingrevia Limited’s EPS is to be Rs. 11.
Shareholding pattern
In September 2024, Jubilant Ingrevia Limited had a majority stake held by the promoters at 51.47 percent, foreign institutional investors at 7.22 percent, domestic institutional investors at 15.47 percent, and the public at 25.92 percent. In public holding, Rekha Jhunjhunwala had a stake of 2.97 percent in the company
Company Overview:
Jubilant Ingrevia Limited is a part of the Jubilant Bhartia Group and specializes in life science products and innovative solutions. The company was established in 1978 and headquartered in Noida, India.
The company serves diverse sectors, including pharmaceuticals, nutrition, agrochemicals, and consumer products. The company offers customized, cost-effective solutions while maintaining high-quality standards.
Written By – Nikhil Naik
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