Jenburkt Pharmaceuticals Ltd (JPL) was originally incorporated as a private limited company in 1985 in the state of Maharastra, Bombay and was subsequently converted into a public limited company in 1994. It is promoted by ‘BHUTA’ family who has diversified interest in trading of chemicals, textiles, steel, finance, export etc. JPL is primarily into manufacturing and marketing of pharmaceuticals formulations. Today it is among the fast growing pharmaceutical company in the Indian market having products under different therapeutic group namely analgesics, anti-inflammatory, anti-bacterial, antibiotics, anti-diabetics, nutritional supplement, anti-allergic, skin preparations, anti-stress, ayurvedic, cough & cold remedies etc. Powergesic, Glucotrol, Zydol, Numox, Piril, Allerzine, Triben, etc are few of its popular brands.
JPL’s manufacturing facility is located at Sihor, Gujarat (24 km from Bhavnagar). Apart from having WHO cGMP certification, the plant has been audited by regulatory authorities of various countries and has been given accredition for export of the products. The plant also has been approved as per revised Schedule-M norms. From a modest beginning, JPL now has field strength of 325 people, and a distribution network of 19 super stockists, 4 consignee agents, 1100 stockists, over 1,00,000 chemists and 65,000 doctors on its promotion list. However off late company has been focusing more on lucrative export market, and is a busy registering product and appointing agent/stockists in several countries. It has filed nearly 25 products dossiers for registration, of which some of them have already been registered, and others are under process. Infact it has received the certification from Kenya, Zambia, Ghana etc and is looking forward to other African countries. Hence in future its international business division is expected to contribute substantially to the total revenue.
Over the years, company has been growing gradually but consistently. For FY07 its sales improved by 22% to 35 cr and NP increased by 15% to 1.20 cr thereby registering an EPS of 2.60 Rs on equity of 4.65 cr. Importantly, company has been very liberal in dividend payment and has a amazing track record of payout ratio as high of 60%. Even for FY07 it paid 1.25 Rs as dividend. Considering JPL’s focus on export market and high value specialty product, its operating margin is expected to improve to around 12% for FY08. Accordingly, it may register a topline of 45 cr and bottomline of 2.75 cr i.e. EPS of 6 Rs on current equity. So investors can accumulate this scrip at sharp declines as it has potential to give 30% returns in 12~15 months.
Jenburkt Pharmaceuticals Ltd (JPL) was originally incorporated as a private limited company in 1985 in the state of Maharastra, Bombay and was subsequently converted into a public limited company in 1994. It is promoted by ‘BHUTA’ family who has diversified interest in trading of chemicals, textiles, steel, finance, export etc. JPL is primarily into manufacturing and marketing of pharmaceuticals formulations. Today it is among the fast growing pharmaceutical company in the Indian market having products under different therapeutic group namely analgesics, anti-inflammatory, anti-bacterial, antibiotics, anti-diabetics, nutritional supplement, anti-allergic, skin preparations, anti-stress, ayurvedic, cough & cold remedies etc. Powergesic, Glucotrol, Zydol, Numox, Piril, Allerzine, Triben, etc are few of its popular brands.
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