NEW DELHI, Sept. 25 -- Private-equity firm KKR's purchase of a stake in JB Chemicals and Pharmaceuticals Ltd has done a lot of good for the latter's stock. Ever since the acquisition was announced, its stock has jumped 51%. The Q1 results seem to cement the consensus street view that the new management could gear up the efficiency quotient. That's the reason why the stock jumped 29% since the results were announced.
No doubt, JB Chemicals has an advantage in its home market with some formulations doing well. Unlike some other smaller pharmaceutical companies, it has a few chronic therapy products, which have seen decent growth even as the overall growth in the Indian pharma market remained lacklustre. Overall, its India business grew 9% ye...