Jubilant Life Sciences stock is a good buy

Jubilant Life Sciences stock is a good buy

By Rajiv Kapoor | 28 February, 2016
The NSE Nifty started the fresh F&O March series on a positive note after losing nearly 6% each in the earlier two months. It ended 59 points up to close the week at 7,029 levels while the other benchmark index, BSE Sensex climbed 178 points to settle at 23,154 on the back of short covering and positive global cues. Few banking stocks such as SBI, Axis Bank and HDFC Bank were relatively strong and in demand among traders while other heavyweight stocks like Coal India, ITC, L&T and Tata Motors rose 1-3% to close the day in the green. With the Finance Minister Arun Jaitley set to announce the Union Budget on Saturday, market men expect the stock market to be range bound in the 200 point Nifty band either way for the month of March.
Jubilant Life Sciences Ltd is an integrated pharma and life sciences company engaged in the manufacture and supply of API formulations, radio pharmaceuticals, allergy therapy intermediates and products, crop science ingredients, life science chemicals and many nutritional products. It also provides services in contract manufacturing of sterile injectables and drug discovery solutions. Jubilant Life is servicing its customers in over 100 countries with a ground presence in India, North America, Europe and China. The company has relationships with 19 of the top 20 pharma companies and 6 among the top 10 agrochemical companies across the globe. Building capabilities through strategic expansion and acquisitions, Jubilant Life has seven world-class manufacturing facilities in India and five in North America plus a team of over 6,000 people across the world. The company reported a net profit of Rs 117 crore for the third quarter ended December 2015 as against a net loss of Rs 11 crore during the same period of previous fiscal while net sales of the company stood at a healthy Rs 1,337 crore for the third quarter of the current financial year. Jubilant Life could post these healthy numbers on the back of major initiatives and momentum generated during the last few months and they have finally started yielding results. Analysts believe that Jubilant Life Sciences offers a great risk reward opportunity for smart investors looking at buying strong fundamental and good quality pharmaceutical companies to add in their portfolio. We feel that Jubilant Life stock has the potential to double in value from the present level of Rs 270 in the next 18 months.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.

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