InCred Equities - JB Chemicals & Pharmaceuticals Ltd

	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Revenue (Rsm)	20,425	23,496	26,904	31,069
Operating EBITDA (Rsm)	5,604	5,677	6,859	8,137
Net Profit (Rsm)	4,480	4,013	5,042	6,037
Core EPS (Rs)	52.8	53.3	65.2	78.1
Core EPS Growth	48.5%	1.0%	22.4%	19.7%
FD Core P/E (x)	31.60	31.28	25.55	21.34
DPS (Rs)	9.5	13.0	16.3	19.5
Dividend Yield	0.57%	0.78%	0.98%	1.17%
EV/EBITDA (x)	23.00	22.65	18.73	15.77
P/FCFE (x)	36.59	35.58	30.49	25.57
Net Gearing	0.1%	(1.4%)	(1.6%)	(1.9%)
P/BV (x)	7.12	5.93	4.93	4.14
ROE	25.1%	20.7%	21.1%	21.1%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Total Net Revenues	20,425	23,496	26,904	31,069
Gross Profit	13,410	15,273	17,757	20,505
Operating EBITDA	5,604	5,677	6,859	8,137
Depreciation And Amortisation	(687)	(716)	(737)	(766)
Operating EBIT	4,917	4,961	6,123	7,371
Financial Income/(Expense)	(72)	(64)	(66)	(68)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	589	601	673	753
Profit Before Tax (pre-EI)	5,434	5,498	6,729	8,056
Exceptional Items	535	(140)
Pre-tax Profit	5,969	5,358	6,729	8,056
Taxation	(1,484)	(1,340)	(1,682)	(2,014)
Exceptional Income - post-tax
Profit After Tax	4,485	4,019	5,047	6,042
Minority Interests	(6)	(6)	(6)	(6)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	4,480	4,013	5,042	6,037
Recurring Net Profit	4,078	4,118	5,042	6,037
Fully Diluted Recurring Net Profit	4,078	4,118	5,042	6,037

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
EBITDA	5,604	5,677	6,859	8,137
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,140)	(838)	(1,052)	(1,262)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	535	140
Net Interest (Paid)/Received	(72)	(64)	(66)	(68)
Tax Paid	(1,422)	(1,340)	(1,682)	(2,014)
Cashflow From Operations	3,505	3,576	4,059	4,793
Capex	(605)	(516)	(517)	(518)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	589	601	673	753
Cash Flow From Investing	(16)	85	156	236
Debt Raised/(repaid)	32	(40)	10	10
Proceeds From Issue Of Shares	0	0
Shares Repurchased
Dividends Paid	(734)	(1,003)	(1,260)	(1,509)
Preferred Dividends
Other Financing Cashflow	(2,788)	(2,053)	(2,839)	(3,342)
Cash Flow From Financing	(3,490)	(3,096)	(4,089)	(4,841)
Total Cash Generated	(1)	564	126	188
Free Cashflow To Equity	3,521	3,620	4,225	5,039
Free Cashflow To Firm	3,562	3,724	4,281	5,097

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Total Cash And Equivalents	309	593	719	906
Total Debtors	3,890	4,506	5,160	5,958
Inventories	3,474	3,991	4,570	5,277
Total Other Current Assets	7,853	10,652	14,257	18,267
Total Current Assets	15,526	19,742	24,705	30,409
Fixed Assets	5,697	5,481	5,244	4,978
Total Investments	129	142	156	172
Intangible Assets	896	912	929	946
Total Other Non-Current Assets	134	142	151	162
Total Non-current Assets	6,855	6,677	6,480	6,258
Short-term Debt	326	286	296	306
Current Portion of Long-Term Debt
Total Creditors	1,869	2,247	2,528	2,892
Other Current Liabilities	1,257	1,321	1,389	1,464
Total Current Liabilities	3,453	3,855	4,214	4,663
Total Long-term Debt
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	101	101	101	101
Total Non-current Liabilities	101	101	101	101
Total Provisions	693	693	693	693
Total Liabilities	4,247	4,649	5,008	5,457
Shareholders Equity	18,097	21,727	26,128	31,156
Minority Interests	37	43	48	54
Total Equity	18,134	21,770	26,177	31,210

	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Revenue Growth	15.1%	15.0%	14.5%	15.5%
Operating EBITDA Growth	48.4%	1.3%	20.8%	18.6%
Operating EBITDA Margin	27.4%	24.2%	25.5%	26.2%
Net Cash Per Share (Rs)	(0.23)	3.97	5.46	7.76
BVPS (Rs)	234.17	281.14	338.09	403.14
Gross Interest Cover	67.91	78.08	93.11	108.43
Effective Tax Rate	24.9%	25.0%	25.0%	25.0%
Net Dividend Payout Ratio	13.5%	18.3%	18.7%	18.7%
Accounts Receivables Days	65.62	65.22	65.57	65.31
Inventory Days	161.85	165.68	170.80	170.13
Accounts Payables Days	92.33	91.36	95.27	93.64
ROIC (%)	34.2%	26.4%	27.7%	27.9%
ROCE (%)	28.7%	23.8%	24.7%	24.9%
Return On Average Assets	27.1%	22.8%	23.6%	23.9%

(91) 22 4161 1552 praful.bohra@incredresearch.com

Market Data

Source: Bloomberg