How do you see the latest financial results of JB Chemicals?
Answer
Answer
J B Chemicals reported net profits of Rs.119.50 crore for the Jun-20 quarter, a growth of 92.4% on a YOY basis. Apart from the absolute profit growth, what really stood out was the net profit margin expanding sharply from 8.96% last year to 22.88% in the Jun-20 quarter.
Total revenues of JB Chemicals were higher by 17.07% at Rs.522 crore for the Jun-20 quarter. This was also supported by a sharp 62% growth in EBITDA at Rs.155.41 crore. At an operating level, the EBITDA margins expanded from 8.25% to 29.76% in Jun-20 quarter.
The combination of good sales growth and an expansion in margins led to the stock gaining over 10% on the day the results were announced. Traders can look at the stock as a buy-on-dips stock for medium term investors.