The share price of Blue Jet Healthcare was listed at ₹380 on the NSE (National Stock Exchange) almost 10% higher than the issue price of ₹346 on Wednesday. In the BSE (Bombay Stock Exchange) share price Blue Jet Healthcare was listed at Rs359.90 per share and touched highs of ₹395.85, during the morning trades.
Investor confidence remained strong in the company as was visible from IPO subscription level as it was subscribed 7.95 times which according to analysts is a good subscription level.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd listing of Blue Jet Healthcare said that “Despite weak market sentiment, Blue Jet Healthcare listing has been better than street expectations. We believe the listing is justified considering its niche product portfolio. While we continue to advise conservative allocated investors to look for decent returns in listing while those who want to buy more should wait and watch the market to settle taking into account decent long-term industry rationales.”
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd mailing list of Blue Jet Healthcare said that “Overall, the listing of Blue Jet Healthcare was a success. The company’s strong fundamentals and good subscription levels were positive factors for this”. Investors can hold it by keeping a stop loss at Rs. 340, said Nyati.
According to Nyati, Blue Jet Healthcare is a manufacturer of contrast media and high intensity sweeteners. The company has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers. Blue Jet Healthcare’s financial performance is also strong, with consistent revenue and profit growth in recent years, Nyati said.
Blue Jet Healthcare is a specialty pharmaceutical company has presence in 3 main product categories. These include contrast media, high intensity sweeteners and pharmaceutical APIs (Active Pharma Ingredients). It is India’s largest manufacturer of contrast media (71% of FY23 revenue), which are used in medical imaging to improve visibility of body tissues under X-ray, CT scan, MRI & Ultrasound, according to analysts. Blue Jet Healthcare has long-term relationships and supply agreements with 3 of 4 largest global contrast media manufacturers, analysts say.
As expected, Blue Jet Healthcare IPO had a decent listing on the stock exchanges today, with a premium of around 14.4% to the issue price of Rs. 346 per share on continued revenue and net profit growth, which rose at a CAGR of 20.2% and 8.6%, respectively, during the FY21-23 period, said Prathamesh Masdekar, Research Analyst, StoxBox. Moreover, the company has strong RoE and ROCE of 26.6% and 31.9%, respectively, in FY23, Masdekar said. Further, the growth in the CDMO model, robust financial performance and expanding production capacity are likely to drive the company’s performance forward. Masdekar remains optimistic on the issue and recommends investors who have received a dose to hold their shares on the opening day and also consider buying on dips from a medium to long-term perspective.
Analysts have already maintained a positive view on Blue Jet Healthcare and various analysts have recommended investing in the Blue Jet Healthcare IPO.
Analysts at Motial Oswal Finacial Services said that “We like Blue Jet Healthcare for its complex product portfolio, presence in niche space, strong customer relationship and high entry barriers. The IPO is valued at 34x Q1FY24 P/E on an annualized basis.