JB Pharma is one of the fastest-growing pharmaceutical companies in the country and a leading player in the hypertension segment. It has a strong domestic presence, which accounts for the majority of its revenue , while the other two markets are Russia and South Africa. In India, JB Pharma has six highly visible brands which are among the top 300 brands in the country.
The company exports its finished branded generic formulations to several countries and is also a market leader in the manufacturing of medicated lozenges .
The company ranks amongst the top five manufacturers globally in the medicated and herbal lozenges. It has a large presence with consistently improving productivity on the back of world-class manufacturing facilities across Panoli and Ankleshwar in Gujarat. The company maintained its run rate of fantastic third quarter FY25 performance with revenue of Rs 963 crores on the back of strong momentum in the domestic business and improved traction in the CDMO business. While gross margin stood at 67% for the quarter, the operating EBITDA saw a sharp margin improvement of 28.1%.
JB Pharma delivered strong profitable growth with the top line growing 14%, operating EBITDA growing 15% to Rs 270 crores and net profit surging 22% to Rs 162 crores.
The solid performance has been enhanced by enabling a mix of business and market as well as expanding the basket of its key brands. From the expense front, other expenditure as a percentage of sales improved to 22.7% versus 23.2% in Q3 FY24. Finance costs also saw a significant reduction from Rs 12 crores during the third quarter of FY24 to Rs 3 crores for Q3FY25 due to a reduction in gross debt.
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he domestic business grew by 22% to Rs 566 crores year-on-year, contributing to 60% of the overall business of the company. Hence, the India business continues to drive excellent growth , led by its chronic business and a progressive portfolio within the acute segment portfolio. The export business of JB Pharma also continues to be on a steady growth path with sequential improvement in its CDMO business through its new project pipeline, which is expected to deliver sustainable value creation in the next 18-24 months time frame.
The India business is classified into three buckets, viz., the legacy portfolio, businesses acquired during 2022–24 and lastly the Ophthal business. The company’s future outlook is also extremely bright with the management aiming to deliver operating margins between 26–28% despite inflationary pressures and external market uncertainty.
The company management have commented that there is going to be good traction in FY25 with a high order book in the CDMO business. There is good visibility of around 4–5 big global projects which are in the development
stage across newer formulations and newer geographies.
After the smooth transition and integration of the Novartis acquisition in January 2024, the ophthalmology portfolio has posted excellent sales, which are progressing well and depicting consistent growth.
The ophthalmology portfolio sales grew by 30% to Rs 60 crores in Q3FY25.
The JB Pharma share price is hovering around Rs 1570 on the bourses, and fund managers and brokers are expecting the share to appreciate by 35% in the next one-year time frame. Since stock markets are extremely volatile at present, investors are advised to check the financials and do their own proper due diligence before committing to any stock purchase.