JB Chemicals & Pharma, Syngene International hit all-time highs

The stock of Syngene International has soared 24 per cent during the past month, as against a 2 per cent rise in the S&P BSE Sensex.

Shares of JB Chemicals & Pharmaceuticals and Syngene International hit their respective all-time highs on the BSE on Wednesday. At 1:57 pm, the stock of JB Chem was trading at Rs 673 apiece, while that of Syngene International was at Rs 364 apiece, up 3.8 per cent each. In comparison, the benchmark S&P BSE Sensex was at 31,121 level, up 302.37 points or 0.98 per cent.

Individualy, Syngene International rallied 9 per cent to Rs 382 in intra-day trade on the BSE today, and surpassed its previous high Rs 368 touched on June 14, 2019. The stock of the pharmaceutical company has soared 24 per cent during the past month, as against a 2 per cent rise in the S&P BSE Sensex.

Furthermore in the past seven trading days, Syngene International gained 20 per cent after the company reported a healthy 24 per cent year on year (YoY) growth in Ebitda (earnings before interest, taxes, depreciation and amortization) at Rs 225 crore in the March quarter of FY20 (Q4FY20). Ebitda margin, too, expanded by 300 basis points to 36 per cent from 33 per cent in year ago quarter.

The company posted quarterly revenue of Rs 628 crore, a jump of 13 per cent YoY from the corresponding quarter last year, when it had posted a revenue of Rs 555 crore. Profit after tax rose 20 per cent to Rs 120 crore relative to last year's profit of Rs 100 crore. The fourth quarter performance was driven by strong growth in its discovery and development services divisions. During the quarter, the company commissioned a new research facility at Biocon Park in Bengaluru.

As for JB Chemicals, it hit a new high of Rs 685, up 6 per cent on the BSE in the intra-day trade today, surpassing its previous high of Rs 659 touched on May 11, 2020. Thus far in the current calendar year 2020, the stock has outperformed the market by surging 61 per cent, as against a 24 per cent decline in the S&P BSE Sensex.

Report suggest private equity funds are eyeing controlling stake in the pharmaceutical company. The promoters, Jyotindra Bhagawanlal Mody and family held 55.91 per cent stake in JB Chemicals as on March 31, 2020.

Last month, the company had received approval from the US health regulator to market Carbamazepine tablets used in the treatment of epilepsy. The company plans to commercialise this product in third quarter of this financial year and is expected to boost the company's US sales.