After disappointing quarters Jagsonpal Pharmaceuticals Limited posted is back on growth path. The company has reported quarterly revenue of Rs. 61.4 crores and operational EBITDA of Rs. 10.2 crores for the Q1FY25, which are higher both on QoQ and YoY basis. Net profit is Rs. 5.3 crores due to exceptional expanse of Rs. 3.3 crores incurred on acquisition of Yash Pharma.
Some interesting key points from the press release:
- The company is on course to deliver 30%+ revenue growth with 20%+ operating margin for the full year which means management guiding revenue of more than Rs. 275 crores ( FY24 revenue Rs. 209 crores) and EBITDA or Rs. 55 crores for FY25 (FY24 EBITDA Rs. 23 crores).
- Cash position of Rs. 150+ crores by end of the year.
- Yash Pharma acquisition effective from 1st June 2024.
- Integrated the business acquired from Yash Pharma into Jagsonpal, and confident of aligning the margins of the acquired business with that of Jagsonpal ahead of schedule.
From the TTM financials, the company seems to be fairly valued, however, if the aggressive growth guidance of the management are met, the stock is available at discount to the peers. Capabilities of CEO Manish Gupta in running the show and clinching acquisition at good prices, who is also holding good amount of stake in the company is another optionality.
Disclaimer: Invested and biased
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