Jubilant Ingrevia - Life Science Ingredients (LSI)

Stock Opportunities
48

Some insights from the CRISIL ratings report:

  • Operating profit margins have varied between 13-17% over the past 5 years
  • Jubilant maintains inventory of ~2 months (raw material + finished goods) and had receivables of 35 days in FY21
  • Cyclicality is sales and margins come largely from the life science chemicals division (48% of sales)
  • Annual cash accruals are expected to be 350-400 cr. which should adequately cover medium term debt repayment obligations (90-120 cr.) along with capex requirements
  • Working capital requirements are not very high as the average utilisation of working capital limits was 30% over past twelve months

https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/JubilantIngreviaLimited_May%2006,%202021_RR_267923.html

Disclosure: Invested (position size here)

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