JB Chemicals hit 52-week high on trademark acquisition

Mumbai-based API formulation and herbal remedy pharma player, JB Chemical registered a gain of nearly six per cent on Wednesday after its board approved the purchase of entire trademark and reported healthy financial numbers for the recently concluded quarter.

JB Chemicals & Pharmaceuticals' board has approved the purchase of entire trademarks portfolio of Unique Pharmaceutical Laboratories Ltd (UPLL) at onetime consideration of Rs 8 crore. The transaction would be completed before the end of this year. Consequently, the aforesaid licensing arrangement will stand terminated and as such, there would be no royalty payment at the beginning of the next financial year.

The stock price was further supported by a good set of numbers for the third quarter. The revenue grew by 14 per cent on YoY basis while, the EBITDA margin expanded by 41 basis points for the same period. The top-line growth was well-supported by a rise in the domestic formulations business (44 per cent of the total revenue) of 14 per cent on YoY basis.

The stock touched its 52-week high of Rs 529 on Wednesday, which is also its intraday high. The stock closed higher by 5.62 per cent at Rs 526.75 on BSE.