Jubilant Ingrevia's shares experienced a notable increase of over 6% to Rs 717 apiece on September 4, following Equirus Capital's upgrade of its target price to Rs 900. This new target suggests a potential upside of 25% from current levels.
The upgrade from Equirus Capital was prompted by the recent shutdown of Pyridine production by global specialty chemicals maker Vertellus in the US. Pyridine, a solvent used in various industries including paint, rubber, and pharmaceuticals, has seen increased costs, which are expected to drive up prices of niacinamide. This price increase is anticipated to enhance profitability in both specialty chemicals and nutrition segments for Jubilant Ingrevia.
At 11:09 am, Jubilant Ingrevia's shares were trading at Rs 723.15, reflecting a 7.3% rise.
Equirus Capital noted that rising Pyridine costs could benefit Jubilant Ingrevia's near-term performance, particularly as the company explores opportunities in the semiconductor industry and aims to secure large contracts to meet its FY29E growth targets.
Despite a 4.7% decline in revenue and a 15.5% drop in profit-after-tax year-on-year for the June quarter, the company remains optimistic. Management expects improvements across all business segments in FY25.
Jubilant Ingrevia's shares have surged over 40% this year, significantly outperforming the benchmark Nifty 50, which has risen 16%.
*Disclaimer: Investment views expressed by experts are their own. Users are advised to consult certified experts before making investment decisions.*
The upgrade from Equirus Capital was prompted by the recent shutdown of Pyridine production by global specialty chemicals maker Vertellus in the US. Pyridine, a solvent used in various industries including paint, rubber, and pharmaceuticals, has seen increased costs, which are expected to drive up prices of niacinamide. This price increase is anticipated to enhance profitability in both specialty chemicals and nutrition segments for Jubilant Ingrevia.
At 11:09 am, Jubilant Ingrevia's shares were trading at Rs 723.15, reflecting a 7.3% rise.
Equirus Capital noted that rising Pyridine costs could benefit Jubilant Ingrevia's near-term performance, particularly as the company explores opportunities in the semiconductor industry and aims to secure large contracts to meet its FY29E growth targets.
Despite a 4.7% decline in revenue and a 15.5% drop in profit-after-tax year-on-year for the June quarter, the company remains optimistic. Management expects improvements across all business segments in FY25.
Jubilant Ingrevia's shares have surged over 40% this year, significantly outperforming the benchmark Nifty 50, which has risen 16%.
*Disclaimer: Investment views expressed by experts are their own. Users are advised to consult certified experts before making investment decisions.*
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