Jubilant Organosys is an integrated pharmaceutical industry player with a wide range of products and services for global life sciences companies. The company has custom research and manufacturing services (CRAMS) and drug discovery services in India. It was originally incorporated as Vam Organic Chemicals in the year 1978. In the year 1988 company launched its first branded product - Vamicol, an adhesive product. Jubilant also holds ISO 9001 certification. In 2005, jubilant Acquired Target Research Associates, Inc. renamed Clinsys Inc.; a US based Clinical Research Organisation (CRO). It also acquired Trinity Laboratories, Inc. and its wholly owned subsidiary, Trigen Laboratories, Inc., renamed Jubilant Pharmaceuticals, Inc., a generic pharmaceutical company in USA having a US FDA approved formulations manufacturing facility. In 2007, it acquired Hollister Stier Laboratories in USA, a contract manufacturer of sterile inject-able vials and allergenic extracts. In 2008, company acquired DRAXIS Specialty Pharmaceuticals, Inc. Canada, a contract manufacturer of sterile & non-sterile products and radiopharmaceuticals and also acquired Speciality Molecules Pvt. Ltd. Engaged in the manufacturing of Fine Chemicals used by Life Science Industry including pharma, agro & cosmetic industry.

Products & Services—

Jubilant Organosys Limited, an integrated pharmaceutical industry player, is the largest Custom Research and Manufacturing Services (CRAMS) Company and one of the leading Drug Discovery and Development Solutions (DDDS) Companies from India. It is successfully positioned as “an outsourcing partner of choice” to global life sciences companies. Leveraging its focus on innovation and customer satisfaction the company serves over 150 customers across 50 countries around the world. Jubilant has a presence across the pharmaceuticals value chain and offers products and services ranging from Life Sciences chemicals, Advance Intermediates & Fine Chemicals, Active Pharmaceutical Ingredients, Sterile Injectables, Generic Dosage Forms, Specialty Pharmaceuticals, to Drug Discovery, Medicinal Chemistry, Clinical Research services and Healthcare. It manufacturers defined product segments, including select APIs (e.g., Carbamazepine and Citalopram), Pyridine and its derivatives, Solid polyvinyl acetate, Vinyl Pyridine Latex and Organic Intermediates (e.g., Ethyl Acetate and Acetic Anhydride).

Manufacturing facilities-- Jubilant Organosys has geographically diversified manufacturing facilities situated across India at Gajraula (UP), Nanjangud (Karnataka), Roorkee (Uttarakhand), Nira (Maharashtra), Udaipur (Rajasthan), Samlaya (Gujarat), Ambarnath (Mumbai) and internationally at Salisbury, state of Maryland (USA), Spokane, state of Washington (USA) and Kirkland, state of Quebec (Canada). The Company's manufacturing facility in Maryland & Spokane, USA, is US FDA, MHRA, ANVISA & PMDA approved. The facility at Kirkland, Canada is US FDA approved.

Financials—

Quarterly results for 1st quarter (apr-jun 2010)

Description                                         Amount(Rs. in lakhs)
Net Sales/Income from Operations            68271.00
Other Operating Income                           291.00
Increase/Decrease in Stock in trade and work in progress    -204.00
Consumption of Raw Materials          38714.00
Purchase of traded goods                 5026.00
Employees Cost                              4554.00
Depreciation                                   2479.00
Other Expenditure                           6570.00
Total Expenditure                            57139.00
Profit before Other Income, Interest & Exceptional Items    11423.00
Other Income                                 81.00
Profit before Interest & Exceptional Items        11504.00
Interest                                          582.00
Profit after Interest but before Exceptional Items        10922.00
Exceptional items                           1201.00
Profit from Ordinary Activities before tax        9721.00
Tax Expense                                  1702.00
Net Profit for the period                   8019.00
Face Value (in Rs.)                         1.00
Paid-up Equity Share Capital            1588.00
Basic EPS after Extraordinary items (in Rs.)    5.05
Diluted EPS after Extraordinary items (in Rs.) 4.60
Public Shareholding (Number of Shares)        83627751.00
Public Shareholding (%)                52.67

Valuation—

Strong inorganic expansion of the company will diversify its operations and drive earnings in the future. At current market price, stock is trading at 14.11 P/E multiple of its FY2011 estimated EPS. We recommend investors to buy “Jubilant Organosys Ltd.” with medium to long term investment horizon.