Blue Jet Healthcare is being initiated with a BUY rating and a target price of ₹1,150. The company’s simplified business model, which includes being a standalone entity with a lean cost structure and a debt-free balance sheet, as well as a niche portfolio, positions it for strong margins and returns. Blue Jet is expected to benefit from the global sales of Bempedoic Acid, which are projected to surpass $1 billion by CY27E.
There are potential upside risks to the estimated 31% CAGR in Bempedoic Acid intermediate sales, especially with the expected commercialization of the product in multiple geographies and the introduction of triple combination products. Furthermore, the company’s scale-up in CDMO, along with a projected 20% CAGR in core contrast media intermediate and high-intensity sweetener sales, is expected to drive EBITDA and PAT growth over FY25-27.
Blue Jet’s strong financial metrics, including over 35% EBITDA margin, 25% RoE, and 35% RoCE – the highest in the CDMO peer-set, support its near-term earnings visibility. These factors are reflected in the target multiples. Overall, Blue Jet Healthcare is well-positioned for growth and offers investors a compelling opportunity.
