JB Chemicals up in the green

There was good news for JB Chemicals. We are used to the US FDA constantly issuing warnings to Indian pharma units after its inspection of the plants. It was thus very good to know that after inspection of JB Chemcial’s Panoli tablet making unit, its found “zero” observations in its Form 483.

The US FDA issues Form 483 when the inspectors feel that a facility has violated the US rules.

This is the same facility which in May’16 was issued a plant closure notice by the Indian National Green Tribunal (NGT). The NGT asked the Govt to revoke the environmental clearance given to JBCPL for its bulk drug plant located at the GIDC Panoli in Gujarat, and further ordered the company to shut down the plant in four weeks following representations from Baroda’s Paryavaran Suraksha Samiti and the People’s Union for Civil Liberties, Ankleshwar.  The company has appealed this order as it believes it has all the necessary clearances.

The company had ended Q4FY16 with a 68% (YoY) rise in net profit at Rs.43 crore on a 16% rise in net sales at Rs.289 crore.

The stock price is up in the green today following the positive US FDA report; it is up over 3% currently at Rs.244 and this is after an intra day high point of Rs.244.