Trays, included one labelled with ‘antibiotics’ sit after being used in experiments at a laboratory. (Photographer: Simon Dawson/Bloomberg)

Jubilant Life Sciences Outperforms Pharma Biggies

Analysts have a new favourite pharmaceutical firm and interestingly it is not part of the Nifty Pharma Index. Ten out of 11 analysts who track Jubilant Life Sciences Ltd., a Noida-based drugmaker, have a buy rating on the stock, according to data compiled from Bloomberg.

The management's focus on reducing debt, a strong lineup of new launches and better growth prospects are some of the reasons cited by analysts for their bullish outlook.

The only other Nifty Pharma stock that comes close is Aurobindo Pharma Ltd. with a consensus buy rating of 90 percent.

The confidence shown by analysts has reflected in Jubilant Life Sciences' stock performance as well. It has gained around 123 percent over the last six months, compared to a decline of 8.9 percent in the Nifty Pharma Index.

The stock has managed to outperform its larger peers like Sun Pharma Ltd., Lupin Ltd. and even Aurobindo Pharma Ltd. – all down between 17 percent and 5 percent over the last six months.

BloombergQuint