Shares of JB Chemicals surged nearly 9 percent on July 1 after Kotak Institutional Equities initiated coverage on the stock with a ‘buy’ rating. Kotak set a target price of Rs 2,025 per share, suggesting a 15 percent upside from current levels.
Kotak’s optimism is based on JB Chemical’s leading market share in its legacy brand families, the anticipated growth of acquired portfolios, strong contract manufacturing organization (CMO) traction, and limited exposure to the US, EU, and other regulated markets. The brokerage also highlighted JB Chemical’s excellent execution track record.
Despite a tenfold increase in the stock over the past five years, Kotak noted that current valuations of 21 times EV/Ebitda and 33 times price-to-earnings estimates for fiscal 2026 do not fully reflect the company’s growth potential.
As of 1:32 PM, JB Chemicals shares were trading 3 percent higher at Rs 1,807.15.
