ADVERTISEMENT

JB Chemicals - Foray Into Nutraceuticals, Probiotics: ICICI Securities

JB Chemicals - Foray Into Nutraceuticals, Probiotics: ICICI Securities

<div class="paragraphs"><p>A scientist tests a dressing sample. (Photographer: Daniel Acker/Bloomberg)</p></div>
A scientist tests a dressing sample. (Photographer: Daniel Acker/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

JB Chemicals and Pharmaceuticals Ltd. announced the acquisition of several brands from Sanzyme to foray into the nutraceuticals and probiotics market for a cash consideration of Rs 6.28 billion (excluding taxes, stamp duties and working capital).

These categories will be synergistic with gastroenterology and nephrology therapies where JB Chemicals already has a strong presence.

Acquired brands Sporlac, Lobun, Oxalo, Pubergen, Nano-leo and Gynogen are among the leaders in their segment and have generated Rs 750 million in H1 FY22 (Rs 880 million in FY21).

With expected annual sales of Rs 1.35 billion and an Ebitda margin of ~33%, the transaction is reasonably valued at approx. five times FY22E sales and ~14 times FY22E enterprise value/Ebitda, in our view.

Click on the attachment to read the full report:

ICICI Securities JB Chemicals and Pharmaceuticals Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.