MOSL: Morning India (9/January/18): 1. Jubilant Life Sciences (Pharma segment doing well)-2 Telecom-3 Metals Weekly

​MOrning India (9/January/18): 1. Jubilant Life Sciences (Pharma segment doing well); 2. Telecom; 3. Metals Weekly

Today’s top research idea

Jubilant Life Sciences: Pharma segment doing well; Life Science Ingredient segment to catch-up soon

• The outlook for JLS remains promising. While specialty pharma (28% of total revenue) remains the key growth driver for JLS, the outlook for the Life Science Ingredient (LSI) segment (45% of total revenue) has also improved. This bodes well for overall revenue and profitability growth for JLS.
  
• We expect JLS to deliver a robust performance in the LSI segment, driven by an improved business scenario for specialty intermediates and nutritional products due to lower supplies from Chinese competitors (led by production restrictions imposed by the Chinese government to reduce pollution), and better demand for the Life Science Chemical business.
  
• We expect JLS to deliver a CAGR of 17% in revenue to INR93b, 14% in EBITDA to INR19.8b and 20% in PAT to INR10b over FY17-20. We roll forward our price target to INR957 (on an SOTP basis) from INR861. Re-iterate Buy.
  

Piping hot news

Vedanta leads electrosteel race with highest offer

• Anil Agarwal's Vedanta submitted the highest bid for bankrupt Electrosteel Steels, ahead of a Tata Group bid, said two people aware of the matter. The other bidders were Renaissance Group promoted by Abhishek Dalmia and an overseas fund backed by Edelweiss, they said. The Vedanta bid was said to be worth about Rs 4,500 crore, although one person said it may inclu-de an additional "sweetener", without providing further details.