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A strong CDMO and Radiopharma business coupled with undemanding valuations is keeping Nirmal Bang bullish on Jubilant Pharmova. The brokerage, after interacting with the company's management, maintained its buy rating on the stock and raised its price target to Rs 432 from Rs 399 earlier.

In an interaction with the brokerage firm, the company's management said that its Radiopharma business or the nuclear medicine division is back to pre-Covid levels and is likely to witness double-digit growth from the next financial year.

This growth is being fueled by new launches and ramp-up of its product Ruby-Fill that is used in PET (positron emission tomography) imaging.

Jubilant Pharmova also said that its allergy specialty business is seeing double-digit growth along with healthy margins. Notably, the company is the sole producer and supplier of venom extract products for the treatment of allergies in the United States. The company also has a product offering range of over 200 different allergenic extracts and standard allergy vaccine mixtures.

On the flip side, the company admitted that its generic business is facing headwinds on account of pricing pressure. However, margins are expected to improve going ahead compared with previous quarters with improving product realisations and new launches.

Jubilant Pharmova added that the CDMO Sterile Injectable business should see double-digit growth in FY24 on the back of strong order book and capacity addition.

Earlier this month, United States Food and Drug Administration (USFDA) completed the inspection at the pharma major’s API manufacturing unit in Nanjangud, Karnataka.

Meanwhile, on Tuesday, Jubilant Pharmova informed exchanges that India Ratings and Research Pvt. Ltd has assigned long-term issuer rating of ‘IND AA+’ to the company’s instruments.

Shares of Jubilant Pharmova have cooled off from their opening highs and are currently trading 0.5 percent higher at Rs 377.30.