Demand recovery, resumption of ops to offset weak Q1 for Jubilant Life

Growth pickup and lower debt could improve its valuations

Jubilant Life Sciences shed 6 per cent on the bourses after reporting muted June quarter results and valuation concerns following the recent rally. Prior to Monday’s correction, the stock had gained over 46 per cent in three months.

Immediate triggers for the slide were the disruption on account of Covid-19, suspension in operations, and the weak showing in key segments. Overall sales were down 13 per cent due to weakness in the pharma and life science ingredient (LSI) businesses.   Within the pharma segment, which accounts for 58 per cent of sales, suspension of operations at the Nanjangud plant for two