InvestorQ : Can I buy Jubilant Life Sciences at the current price of Rs.625, even after the sharp rally in recent days?
Mitali Bhutta made post

Can I buy Jubilant Life Sciences at the current price of Rs.625, even after the sharp rally in recent days?

Answer
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Dawn Cherian answered.
3 months ago


While the stock has rallied sharply in the last few weeks, you can surely look to buy the stock even at this price provided you are willing to take a view of 1 year and beyond. Jubilant also reported strong earnings for the Mar-20 quarter. Net profits were 92% higher at Rs.260 crore for the Mar-20 quarter while revenues for the quarter were flat at Rs.2391 crore. What was gratifying was that the operating margins of Jubilant Life improved by nearly 740 bps to 23.7%, putting it in the top league of pharma companies. The company maintains positive outlook for business performance as well as for healthy cash flow generation to reduce leverage. It may be recollected that Jubilant Life had recently signed a licensing agreement with Gilead Sciences of the US to manufacture and sell Remdesivir, a potential therapy for Covid-19, in 127 countries including India.