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Business Standard
30-04-2025
- Business
- Business Standard
Blue Jet Healthcare jumps 6% as MOFSL initiates coverage, 26% upside seen
Blue Jet Healthcare share price today: Shares of pharma company Blue Jet Healthcare surged around 6.5 per cent on Wednesday to hit an intraday high of ₹730.10 on the NSE after Motilal Oswal Financial Services (MOFSL) initiated its coverage with a 'Buy' rating. The brokerage firm has set a target price of ₹865, which shows an upside of 26 per cent from its last closing price of ₹685.40. According to analysts at MOFSL, the company has established itself as a reliable supplier of Contrast Media and Pharmaceutical Intermediaries & API to its customers for the past three decades. It is now significantly increasing its investment in research and development (R&D) to move up the value chain. At 2:38 PM on Wednesday, Blue Jet Healthcare's stock was quoting at ₹715, up 4.32 per cent on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 24,330.95, down 5 points or 0.02 per cent. On a year-to-date basis, the stock has surged around 21 per cent compared to a 2.9 per cent increase in the Nifty50 index. The pharma company's total market capitalisation stood at ₹12,381.96 crore. Despite subdued performance from FY20 to FY24 due to a lack of new launches, the company is poised for a sharp turnaround on the back of product ramp-ups and new launches. The company's revenue, Ebitda (earnings before interest, tax, depreciation and amortisation), and profit are likely to grow at a CAGR (compound annual growth rate) of 27 per cent, 24 per cent and 19 per cent, respectively, over FY25-27E. It expects an average Ebitda margin of 35.1 per cent during the same period. During FY25-27E, the brokerage expects Blue Jet to record free cash flow (FCF) of ₹360 crore and cumulative capex (capital expenditure) of ₹500 billion. "Blue Jet Healthcare's revenue growth will be driven by new products in iodinated and gadolinium contrast media, NCE intermediates, and a high-intensity sweetener variant. The PI/API segment is also set for strong growth, with ramp-up in supplies for Esperion's Bempedoic acid in coming quarters," the brokerage said. Recently, the company commissioned Plant 6 at unit 2 in Ambernath with an investment of ₹90 crore, adding 120 KL capacity for PI and contrast media. In addition, it started cardiovascular PI production in mid-September 2024, increased R&D into advanced platforms and bolstered talent for CDMO growth. ALSO READ | However, MOFSL also flagged some downside risks for the company including high product and customer concentration, delays in new product ramp-up, and lower margins. "Upside risks include a faster ramp-up of high-margin products and increased long-term contracts that could boost growth and valuations," the brokerage said. About Blue Jet Healthcare Incorporated in 1968, Blue Jet Healthcare is a pharmaceutical and healthcare ingredient company that operates as a Contract Development and Manufacturing Organisation (CDMO). It primarily focuses on contrast media intermediates, high-intensity sweeteners, pharmaceutical intermediates and APIs. It has a presence in over 50 countries across the United States, Europe and Asia.
Mint
30-04-2025
- Business
- Mint
Small-cap stock soars 76% in 1 year; Motilal Oswal sees 26% more upside— a potential multibagger in the making?
Small-cap stock: Blue Jet Healthcare share price jumped over 6 per cent in intraday trade on the BSE on Wednesday, April 30, looking set to snap its three-day losing run after domestic brokerage firm Motilal Oswal Financial Services initiated coverage on the stock with a buy recommendation, suggesting the potential for multibagger returns. The small-cap stock opened at ₹ 690 against its previous close of ₹ 686.70 and rose over 6 per cent to an intraday high of ₹ 729.25. Around 11 AM, Blue Jet Healthcare share price traded 5.61 per cent higher at ₹ 725.20. Equity benchmark Sensex was flat at 80,293 at that time. Blue Jet Healthcare share price has been on a roll over the last year, surging 76 per cent as of April 29 close. Shares of Blue Jet Healthcare debuted on the Indian stock exchanges on November 1, 2023. In just about a year and a half, the stock has rallied 98.5 per cent from its issue price of ₹ 346. Based on today's high of ₹ 729.25, it has more than doubled investors' money, delivering multibagger returns of 111 per cent. The small-cap stock recently hit its 52-week high of ₹ 968.75 on March 21 this year, whereas it hit a 52-week low of ₹ 346.70 on June 4 last year. However, it has seen selling pressure in April. As of the previous session's close, the stock has suffered a loss of 22 per cent this month and is set to snap its five-month winning streak. Despite stellar gains over the last year, domestic brokerage firm Motilal Oswal Financial Services believes the stock has more room to grow. The brokerage firm has initiated coverage on the stock with a 'buy' recommendation. Motilal has given a target price of ₹ 865, implying a 26 per cent upside potential from the stock's April 29 close. "With its niche product offerings in contrast media and pharmaceutical intermediaries and API (active pharmaceutical ingredient), Blue Jet Healthcare has been changing how the healthcare industry caters to the therapeutic needs of patients around the globe," Motilal Oswal noted. "The company has established itself as a reliable supplier to its customers for the past three decades and is now working toward moving up the value chain by significantly increasing its investment in R&D (research and development)," the brokerage firm added. Motilal said Blue Jet Healthcare's revenue growth will be driven by new products in iodinated and gadolinium contrast media, NCE intermediates, and a high-intensity sweetener variant. The brokerage firm also said the PI/API segment is set for strong growth, with a ramp-up in supplies for Esperion's Bempedoic acid in the coming quarters. Taking note of the existing products ramping up and new product launches, Motilal Oswal expects Blue Jet Healthcare to post a CAGR of nearly 27 per cent, 24 per cent and 19 per cent in revenues, EBITDA and PAT, respectively, over FY25-27E. Motilal also expects a sharp uptick in the pharma Intermediaries segment, and an average EBITDAM of 35.1 per cent during FY25-27E. On the valuation front, according to Motilal Oswal, the stock is trading at a PE (price-to-earnings) of nearly 28 times on FY27E EPS (earnings per share) of ₹ 24.7 and FY27E EV/ EBITDA (enterprise value to earnings before interest, taxes, depreciation and amortisation) of nearly 20 times. Read all market-related news here Read more stories by Nishant Kumar
