Buy JB Chemicals; target of Rs 251: Sharekhan

Outlook remains strong

The operating performance achieved during Q1FY2015 is sustainable with an upside potential in the Russia-CIS business, where the company is in the process of expanding its distribution network, and the US business, where the company has started selling products through partners. We expect the strong traction in the domestic business to continue with a focus on field force productivity. A rich cash balance (of approximately Rs450 crore) keeps alive the scope for inorganic initiatives. We expect the revenues and profits to grow at a compound annual growth rate (CAGR) of 14% and 24% over FY2014- 2016 respectively

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