Nuvama has reiterated a ‘Buy’ rating on Jubilant Ingrevia shares, with a target price of ₹868, implying strong upside from the current market price of ₹705.00. The brokerage acknowledged an in-line Q4FY25 performance, though it also adjusted future earnings estimates due to weakness in one of the company’s key segments.
In Q4, sales declined 2.2% year-on-year, but margins improved by 546 basis points to 14%, supported by cost efficiencies and increased contribution from specialty chemicals and nutrition businesses. The chemical intermediates segment, however, posted an EBIT loss, weighing on overall profitability.
Nuvama highlighted contract development and manufacturing (CDMO) and niacinamide as near-term growth drivers, while new product launches focused on sunrise sectors are expected to fuel long-term expansion.
Despite the positives, the brokerage trimmed FY26E and FY27E EPS estimates by 13% and 11.3%, respectively, to reflect ongoing pressure in the chemical intermediates division.
Disclaimer: This article is based on brokerage commentary and publicly available data. It does not constitute investment advice. Business Upturn and the author do not recommend buying or selling any stock mentioned.