JB Pharma’s Q2 results propel stock to 52-week high; Should you buy, hold or sell the stock?

JB Chemicals &Pharmaceuticals’ shares soared over 5% to hit a fresh 52-week high of Rs 1,536.25 a day after the company posted a 36% surge in profit after tax at Rs 151 crore in the second quarter of FY25 compared to Rs 111 crore in Q2FY23. The company’s revenue in the quarter under review stood at Rs 882 crore, as against Rs 809 crore in the corresponding period a year ago, JB Chemicals & Pharmaceuticals said in a statement.

JB Chemicals & Pharmaceuticals have been on a winning streak, treating investors with impressive returns over the last one year. The share price has gained 8.29% in the last five days, 3.55% in the last one month, 47.50% in the last six months and a whopping 55.18% year to date.

Prabhudas Lilladher: Buy – Target Price : Rs 1675

“We believe JB Chemicals & Pharmaceuticals will continue with its growth momentum driven by 1) geographical expansion of legacy brands 2) improvement in MR productivity 3) scale up in Sanzyme, Azmarda and Razel franchise 4) launch of new products & therapies 5) scaling up contract manufacturing business and 6) improvement in FCF generation. Our FY24/25E EPS stands broadly remains unchanged. We expect EPS CAGR of 29% over FY23-26E. At CMP, the stock is trading at 27x FY25E P/E adjusted for ESOP and amortization charges. We maintain our ‘BUY’ rating with revised Target Price of Rs 1,675/share (Rs 1,500 earlier), valuing at 30x Sept 2025E EPS adjusted for ESOP and amortization charges.”

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