Saturday, February 20, 2010

Stock Idea: JB Chemicals & Pharma

JB Chemicals & Pharma. Ltd— BUY—66—INR
Sector — Pharmaceuticals
Regd.Off.— Neelam Centre, Hind Cycle Road, Worli, Mumbai - 400030
Listed — NSE, BSE.
Company overview—
J. B. Chemicals & Pharmaceuticals Ltd. (JBCPL) is one of India’s fastest growing, professionally managed, global pharmaceutical companies manufacturing a wide range of innovative specialty medicines for domestic and international markets. A flagship company of the Unique Group, it is also known as "Unique". J. B. Chemicals & Pharmaceuticals Ltd. known to many, as Unique Pharmaceutical Laboratories is one of India’s leading global pharmaceutical companies. The company manufactures and markets a wide range of pharmaceutical formulations, herbal remedies, bulk drugs, intermediates and radio-diagnostics. J B Chemical & Pharmaceuticals Ltd. is a customer driven, financially sound company, consistently enhancing value for its shareholders by rewarding them with healthy dividends year after year. It has a large global presence with operations in over 50 countries across the globe. Over 50% of the Company’s revenue comes from exports to USA, Europe, Latin America, Africa, and South East Asia. To further enhance its strength in foreign markets, company has also entered into joint venture and strategic tie-ups with key partners in USA etc.
Products & Services—
Its product portfolio consists of pharmaceutical specialties in various dosage forms, herbal remedies, diagnostics, generic drugs, active pharmaceutical ingredients (APIs). Some of the products within these categories enjoy leadership positions in the Indian and foreign markets. Company is strategically focused on R&D and totally committed to respond promptly to market needs by developing quality products at affordable prices for the masses. With a strong base of 11 state-of-the-art manufacturing units (including 3 US FDA approved Tablet & API plants) and two DSTC approved R&D centers, the company has entered a dynamic phase of expansion into newer and faster growing therapeutic segments such as anti-diabetics, CNS and Respiratory. It manufactures basic chemicals, petrochemicals, pharmaceuticals, photographic chemicals and agro-based products. Its product portfolio includes metrogyl, rantac (a ranitidine-based formulation), and nicardia (a cardiac care medicine). It has a fully automated 100 per cent EOU lozenges plant of capacity 400 million units par annum at Daman, manufacturing hard catidies.
J. B. Chemical & Pharmaceuticals Ltd.'s top four brands are Doktor Mom, Metrogyl, Rantac, Nicardia, OF. API products are not offered in countries where valid patents exist. However, final responsibility with respect to third party's patent rights in a specific country lies exclusively with the user." In formulations company manufactures ANTHELMINTICS, ANTI DIARRHOEAL, ANTIBIOTICS & CHEMOTHERAPEUTIC AGENTS, ANTIDIABETIC, ANTIHISTAMINE SYSTEMIC, CARDIOVASCULAR/CARDIC CARE, G.I/PROKINETIC, G.I/ANTIULCERANT, NASAL DECONGESTANTS, NEURO / PSYCHIATRY, NSAID's/ANTIRHEUMATIC, NUTRITIONAL & TONICS, RADIODIAGNOSTICS, SEX STIMULANTS, UROLOGY, COUGH & COLD, TROPICAL PREPRATIONS, TROPICAL ANTIBACTERIAL/ANTISEPTIC, DENTAL PREPARATIONS, MULTIVITAMINS & REJUVENTORS, SEX STIMULANTS, HERBAL PREPARATIONS.
Research & Developments—
R&D is the lifeblood of J. B. Chemicals & Pharmaceuticals Ltd. Company’s scientists has discovered 20 New Molecules in NSAID therapeutic segments. Two state-of-the-art R&D laboratories at Mumbai & Ankleshwar match superior standards. Its current and future R&D activities focus on development of Generic Products for Regulated Markets.
Recent News—
Company has received US food and drug administration (USFDA) approval to the abbreviated new drug application (ANDA) for Cetirizine 5 mg. and 10 mg. tablets. These formulations have been found to be bioequivalent to the innovator McNeil Consumer Healthcare’s product "Zyrtech". Cetirizine tablets are now sold over the counter (OTC) in USA. It has sales of about USD 1.4 billion in USA prior to it became OTC product. Company would manufacture these formulations at its state of the art manufacturing facility at Panoli (Gujrat), which has already been classified as acceptable and GMP compliant by USFDA. Company is in the process of negations with its marketing partners in USA for the launch of these products in USA. The approval has potential to further strengthen the company’s Rest of the World (RoW) business that has shown good growth in the last several years.
At current market price, stock is trading at 5.6 P/E multiple of its FY2011 estimated earnings. We recommend investors to Buy "JB chemicals and Pharmaceuticals ltd." for medium to long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)

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