The latest quarterly results of JB Chemicals indicate progress made by
the company in improving the margins as well as in expanding the
business:
The company’s net revenue grew by 32% yoyto Rs212 crore adjusting to other operating income in Q2 FY2013;–PBIT came at Rs25.7 crore as compared to Rs.40.7 crore during Q2FY2013.
This is very impressive considering that the company registered Other
Operating Income (OOI) of Rs.5.12 crore in Q2FY2013 as compared Rs.32.9
crore in Q2FY2012. If we adjust for the variation in OOI, the PBIT has
grown by 87% yoy Net profit was Rs.39 crore during Q2FY2013 –quarterly EPS is alone Rs.4.6;
The company has net cash of Rs.469 crore (cash & current investments of Rs.515 crore minus debt of Rs.46 crore), which is 3.1times its Net Enterprise Value of Rs.152 crore (Current market Cap of Rs.621 crore less net cash of Rs.469). Its book value is at Rs.997 crore as of September 2012, which is Rs.117.7 per share or 1.6 times the current market price;
Considering current margin and growth, the company can achieve Rs.10 EPS in FY2013, implying a P/E of 7.3x at current market price. Further, its has cash and equivalents of Rs55 per share which is 76% of current stock price. The stock can easily double in a year’s time. - My target for JB Chemicals is Rs 150 for the long term
The company has net cash of Rs.469 crore (cash & current investments of Rs.515 crore minus debt of Rs.46 crore), which is 3.1times its Net Enterprise Value of Rs.152 crore (Current market Cap of Rs.621 crore less net cash of Rs.469). Its book value is at Rs.997 crore as of September 2012, which is Rs.117.7 per share or 1.6 times the current market price;
Considering current margin and growth, the company can achieve Rs.10 EPS in FY2013, implying a P/E of 7.3x at current market price. Further, its has cash and equivalents of Rs55 per share which is 76% of current stock price. The stock can easily double in a year’s time. - My target for JB Chemicals is Rs 150 for the long term
SOURCE : DUKE
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