J.B. Chemicals & Pharmaceuticals Ltd Research Report By CD Equisearch

JBCPL, one of India’s leading pharmaceutical companies, manufactures and markets a diverse range of pharmaceutical formulations, herbal remedies and APIs. JBCPL exports to many countries worldwide with a strong presence in Russia, Ukraine, CIS countries and South Africa. The company has placed enhanced focus on US business. The Company’s 5 ANDAs are awaiting approval and plans to file a few year. Besides this, the Company plans to manufacture certain APIs itself to make the US business more profitable and remove uncertanity associated with third party API source. The income from operations in FY16, which was the highest in a decade, registered a growth of a 9.7% y-o-y. The company which has seen better profit margins in the past (read: FY10 and FY11), exhibited an operating profit margin of 16.4% and a net profit margin of 12.2%.Analysis shows that the Indian pharmaceuticals market will grow to USD 55 billion by 2020 (see chart) driven by a steady increase in affordability and a sharp jump in the market access, with the potential to reach USD growth scenario. At the projected scale, this market will be comparable to all developed markets other than the US, Japan and China. Even more impressive will be its level of penetration. In terms of volumes, India will be a clo the US market. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases anti-cancers that are on the rise.