Jubilant Ingrevia hits 52-wk high as arm inks pact with leading agrochem co
Source: Business Standard
Jubilant Ingrevia share price
The stock surged after the specialty chemicals company announced that its subsidiary has inked a pact with a leading agrochemical company. to produce and supply it with an agro-intermediate for one of its key agro chemical products.
Click here to connect with us on WhatsApp
At around 11:49 AM, shares of Jubilant Ingrevia were up 7.38 per cent, at Rs 832.4 per share on the BSE. In comparison, the BSE Sensex was trading 1.48 per cent lower at 83,021.85 around the same time.
“We wish to inform you that Jubilant Agro Sciences, a wholly owned subsidiary of the company, has entered into an agreement with a leading Agrochemical Company to produce an Agro Intermediate for one of the key Agro actives of the customer,” the company’s exchange filing stated.
The filing added that the overall consideration will be paid based on the revenue of more than $300 million in the next few years after the commencement of production. Jubilant Agro Sciences will invest in the manufacturing facility to supply the agro intermediate to the customer.
As per Jubilant Ingrevia, the customer is a multi billion dollar company. Other details of the company were not revealed in Jubilant’s exchange filing.
Domestic brokerage Nuvama had recently raised its target price on Jubilant Ingrevia to Rs 849, from Rs 762 per share, along with retaining its ‘Buy’ rating on the company.
The brokerage expects Jubilant’s earnings before interest, tax, depreciation and amortisation (Ebitda) contribution from its speciality chemicals business to grow from 48 per cent in FY24 to 65 per cent by FY27.
“A likely recovery in the agrochemicals sector, combined with early progress in the diketene business shall drive margins,” the report stated.
In the past one year, shares of Jubilant Ingrevia have gained 61.4 per cent, compared to the BSE Sensex’s rise of 29 per cent during the same period.
First Published: Oct 03 2024 | 1:15 PM IST
