n       Volume growth strong. The company's pharma business grew 3% yoy led by 5% growth in the life science products segment. However, the volume growth was at 13%, which indicates recovery in the outsourcing business. However, life science services declined 3% yoy due to slow regulatory approvals and slowdown in clinical research industry in the US.

n       Key highlights. The agri products & performance polymer (APP) business (14% of total revenue) grew a strong 29% yoy, driven by price stabilisation and nutrition-based subsidy in agri products. The company has received court approval for demerger of APP business which would be listed separately in Jan '11.

n       Outlook. We expect recovery in growth from 2HFY11 on the back of strong CRAMS order book and commercialisation of new contracts. Margins would also improve, with higher revenue growth and increasing capacity utilisation.

n       Valuation and risks. At CMP, Jubilant trades at 12.2x FY11e and 11x FY12e earnings. We retain our target price of `411 and re-iterate Buy. Risk: Delay/failure in execution of contracts.