JB Chemicals at new high

JB Chemicals is very much the news maker today morning. From yesterday’s close of Rs.830.10, it opened higher at Rs.898.40 and rose to hit a new 52-week high at Rs.965. Volumes are up over 5.5 times.

The market is very enthused with its earnings for Q1FY21. It reported a 92% (YoY) jump in consolidated net profit at Rs.119 crore on a 17% rise in net revenue at Rs.446 crore.

EBITDA was up 62% at Rs.155 crore.

A 77% increase in other income – primarily from current investments and a 6% fall in total expenses helped shore up the bottomlines.

Recently, CCI gave its nod for 64.90% stake in the company by Tau Investment, an indirect wholly-owned subsidiary of KKR Asian Fund. Following this, in July 2020, Tau Investment made an open offer to acquire up to 2,00,93,346 shares of JB Chemical to its existing shareholders. The open offer constitutes 26% at the offer price of Rs 745/share.