Pick JB Chemicals over Glenmark: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan, in a chat with ET Now talks about JB Chemicals.

JB Chemicals supplies a lot to Russian and all, they are some pretty big brands. Am I correct on this?

They are at the moment focussing on the domestic market, both formulations and APIs and they are going to move into the CRAM space in a big way.

Why are the valuations so low? Why have not we seen momentum?

Essentially it is a low profile company which is focussing only on the domestic market and they have not really focussed on the generic market or licensing business in a big way. Now they are moving into CRAM. So for a company, which is very small, nobody will get excited because the growth is not going to be that strong - 12 15% top line growth.

If I have to pick value and I could pick only one, would I pick a JB Chemicals or a Glenmark?

Absolutely JB Chemicals because that's a niche company zeroed at, the net free cash flow addition year after year is about 100 crores. So from that perspective, JB Chemicals definitely is better.