Blue Jet Healthcare, a Contract Development and Manufacturing Organization (CDMO), made a strong debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today. The company's shares premiered with a 9.8% premium on NSE and a 4% premium on BSE, commencing at an Initial Public Offering (IPO) price of ₹346, in addition to a ₹20 pre-listing premium in the unlisted market.
The IPO witnessed an eightfold oversubscription, primarily driven by Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs). The pricing was set between ₹329-₹346. Analysts attribute this successful debut to Blue Jet's CDMO model, solid financials, and ongoing expansion of production capacity.
Blue Jet Healthcare specializes in crafting specialty pharmaceutical and healthcare ingredients for innovators and multinational generic pharmaceutical companies through multi-year contracts. As of mid-2023, the company operates three manufacturing facilities in Maharashtra. In Fiscal Year 2021, it further bolstered its capacity by leasing a greenfield industrial facility in Ambernath.
The company's financial performance for Q2 2023 revealed a 24% year-over-year increase in total income to ₹185 crore ($24.6 million), along with a substantial 59% surge in net profit to ₹44.1 crore ($5.9 million). This robust financial growth is expected to continue due to the company's strategic business model and ongoing capacity expansion efforts.
InvestingPro Insights
Blue Jet Healthcare's market debut is worthy of attention, but potential investors should also consider key metrics and insights from InvestingPro. The company's gross profit margin stands impressively at 22.41%, indicating a strong ability to turn revenue into profit. However, InvestingPro Tips indicate that the company has not been profitable over the last twelve months as of Q2 2023.
The company's market capitalization is adjusted to $2588.6 million, and it has a negative P/E ratio, which can be interpreted as the company not making a profit. Furthermore, the company's revenue for the last twelve months as of Q2 2023 was $5857.7 million, but with a negative growth of -2.54%.
InvestingPro also highlights that the company's stock price has performed poorly over the last decade, and it doesn't pay dividends to its shareholders. These factors, combined with the company's high revenue valuation multiple, might be significant considerations for potential investors.
For those interested in more in-depth analysis and tips, InvestingPro offers a multitude of additional insights and data.
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