JB Pharma Okays Dividend of Rs. 8.50: Record Date Set; Is The Stock A Good Buy?

J.B. Chemicals & Pharmaceuticals Ltd. is one of India's fastest-growing pharmaceutical firms. Its two home markets are South Africa and Russia, in addition to its significant presence in India, which generates the majority of its revenue. Six of the company's brands are among the top 300 IPM brands in India. The firm is one of the top 5 producers of medicated and herbal lozenges in the world. It boasts eight cutting-edge production facilities in India, one of which is specifically designed to produce lozenges. The world's top regulators have certified the production facilities.

JB Pharma Dividend

"This is to inform you that the Board of directors of the Company at its meeting held today has declared interim dividend of Rs. 8.50 per equity share of face value of Re. 1 (850%) for financial year 2024-25. The dividend will be credited on February 21, 2025," said the company in a stock exchange filing.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Company has fixed Saturday, February 8, 2025 as record date, to ascertain eligibility of the beneficial owners/shareholders of the Company to receive the interim dividend for FY 2024-2025," JB Pharma informed to stock exchanges.

JB Pharma Q3 Financials

From Rs 845 crores in Q3 of FY24 to Rs 963 crores in the third quarter of FY25, JB Pharma saw a 14% increase in sales. To Rs 270 crores, operating EBITDA (earnings before interest, depreciation, and taxes) increased by 15%. Compared to Rs 134 crores in Q3 of FY24, profit after taxes showed a robust 22% rise to Rs 162 crores in the quarter under review.

The company posted revenue of Rs 2969 crores during the first nine months of the fiscal year 2024-25, up 13% from Rs 2622 crores for the same period the previous year. Operating EBITDA, or earnings before interest, depreciation, and taxes, rose from Rs 729 crores in the year-ago quarter to Rs 846 crores in Q3FY25, a 16% boost. Compared to Rs 426 crores in 9M FY24, profit after tax surged by 20% to Rs 514 crores in 9M FY25.

Mr. Nikhil Chopra, CEO and Wholetime Director, JB Pharma mentioned, "JB has delivered consistent growth over last few years even amidst a volatile macroeconomic environment. This has been enabled by our mix of businesses and markets, specifically our focus on India branded formulations, CDMO, and select international markets which play to our strengths, with limited revenues in countries that might present trade-related or economic volatility challenges."

"JB is well-positioned to deliver continued growth going forward as well. The strategy and levers are well-defined, and we have a strong team that will execute. Our India business continues to drive market beating growth led by chronic business and progressive portfolio within the acute segment. Our export business continues to be steady with sequential improvement witnessed in our CDMO business. While the growth run-rate of JB's quarterly performance has been maintained, we have also improved our operating margins driven by product mix and efficiency initiatives," he added.

"Advancement of various new projects in the CDMO business will flow through into growth numbers in the near to medium term, and we have a good pipeline of future product commercialization opportunities in international business which will deliver continued growth," Nikhil Chopra further commented.

JB Pharma Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "JBCHEPHARM is currently trading at ₹1,714, exhibiting a sideways to bearish trend as it fluctuates within the ₹1,660-₹1,820 range, indicating neutral sentiment. The stock is facing resistance at its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), while finding support at ₹1,669, suggesting it is in a consolidation phase. Additionally, the Relative Strength Index (RSI) is at 40.74 and trending downward, further reinforcing a bearish outlook until it reaches the support level. This indicates that the stock may continue consolidating, and a breakout from this range could determine its next directional move."

"If the bearish trend persists, JBCHEPHARM may approach a key support zone between ₹1,670 and ₹1,630, potentially offering a buying opportunity if reversal signals emerge. Conversely, if the stock sustains above the critical resistance level of ₹1,815 and demonstrates signs of a trend reversal, it could present an attractive entry point for investors. A long position may be considered at the current market price of ₹1,714, with an upside target in the range of ₹2,000 to ₹2,100," the analyst further commented.

Disclaimer

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