 "This smallcap stock surges 21% in 2 days; zooms 101% against issue price")
Shares of Blue Jet Healthcare hit a new high of Rs 695.55, and were locked in the 10 per cent upper circuit on the BSE in Thursday’s intra-day trade amid heavy volumes on the back of robust earnings. The company reported 208 per cent year-on-year (YoY) jump in profit after tax at Rs 99.0 crore in the December quarter (Q3FY25). This smallcap pharmaceutical company had posted PAT of Rs 32.1 crore in Q3FY24.
In the past two days, the stock has surged 21 per cent. It has been more-than-doubled or zoomed 101 per cent against its issue price of Rs 346 per share. Blue Jet Healthcare made its stock market debut on November 1, 2023.
The average trading volumes at the counter rose over 10-fold, with a combined 417,000 equity shares changing hands on the NSE and BSE. There were pending buy orders for a combined 783,000 shares, the exchanges data shows.
In Q3FY25, the company’s revenue from operations increased 90.9 per cent to Rs 318.40 crore, from Rs 166.80 crore in the year-ago period. Its earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 127 per cent YoY to Rs 124.0 crore in Q3FY25, from Rs 54.6 crore in Q3FY24. The company's Ebitda margin expanded 630 bps to 39.9 per cent in Q3FY25, from 32.7 per cent in Q3FY24.
The management said the strong earnings during the quarter were largely driven by the Pharmaceutical Intermediate business and the High Intensity Sweetener business. The improved profitability was mainly due to high sales volume, cost optimization leading to absorption of fixed cost. The company commissioned one manufacturing block at Ambernath in the quarter, a significant milestone for us which will help the company reap benefits in the coming quarters, the management said.
Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredient and intermediate company, operating under a contract development and manufacturing organization (CDMO) business model. The company has specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners.
They supply a critical starting intermediate and several advanced intermediates to three of the largest contrast media manufacturers in the world, including GE Healthcare, Guerbet, and Bracco. They also supply high-intensity sweeteners to several multi-national companies, including Colgate Palmolive (India) Limited and Unilever.
India remains the third largest CDMO market and is the fastest growing at a compound annual growth rate (CAGR) of 14.6 per cent from $19.6 billion in 2023 to $44.6 billion by 2028 by tapping API and contract research opportunities from many new molecules going off-patent in coming years, the company said in its FY24 annual report.