(Reuters) – India’s J B Chemicals & Pharmaceuticals reported a rise in second-quarter profit on Wednesday, helped by higher domestic demand for its gastrointestinal and cardiovascular drugs.
The drugmaker’s consolidated net profit rose 16% to 1.75 billion rupees (about $20.8 million) for the quarter ended Sept. 30.
Its revenue climbed 13.5% to 10.01 billion rupees, with the domestic formulations business – which forms about 60% of total revenue – rising 22%.
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KEY CONTEXT
The company continued to benefit from buoyant demand for its copycat drugs such as antibiotic Metrogyl, which treats infections of the liver and stomach, and lozenges for sore throats.
Analysts noted that drugmakers would benefit from domestic demand in the quarter, as heavy rains would likely result in the spread of water-borne diseases.
A recovery in demand in J B Pharma’s key South Africa market also aided its earnings, the company said.
Larger peers Cipla and Sun Pharma beat second-quarter profit estimates on the back of resilient sales in India and the U.S., a key market for these companies.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analyst price yield
(%) s target** (%)
J B Chemicals 37.19 24.22 13.68 22.13 Buy 11 0.95 0.66
and
Pharmaceuticals
Ltd
Cipla Ltd 25.90 16.39 8.14 9.84 Hold 33 0.97 0.81
Sun 35.29 26.01 9.73 14.75 Buy 32 0.93 0.75
Pharmaceutical
Industries Ltd
Dr Reddy’s 18.07 11.86 9.29 3.51 Hold 34 0.97 0.63
Laboratories Ltd
JULY-SEPTEMBER STOCK PERFORMANCE
($1 = 84.2940 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
