⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JBCHEPHARM - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.0
| Stock Code | JBCHEPHARM | Market Cap | 28,133 Cr. | Current Price | 1,796 ₹ | High / Low | 1,935 ₹ |
| Stock P/E | 39.9 | Book Value | 238 ₹ | Dividend Yield | 0.88 % | ROCE | 25.9 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,760 ₹ | DMA 200 | 1,720 ₹ |
| Chg in FII Hold | -2.46 % | Chg in DII Hold | 3.21 % | PAT Qtr | 200 Cr. | PAT Prev Qtr | 198 Cr. |
| RSI | 52.1 | MACD | 11.8 | Volume | 26,015 | Avg Vol 1Wk | 77,658 |
| Low price | 1,303 ₹ | High price | 1,935 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.01 |
| 52w Index | 78.0 % | Qtr Profit Var | 15.8 % | EPS | 45.2 ₹ | Industry PE | 30.6 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT improved from ₹198 Cr. to ₹200 Cr. (15.8% growth), showing steady earnings momentum.
- Margins: ROE at 20.2% and ROCE at 25.9% highlight strong profitability and efficient capital use.
- Debt: Debt-to-equity ratio at 0.01 reflects a virtually debt-free balance sheet.
- Cash Flows: Dividend yield of 0.88% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 39.9 vs Industry PE of 30.6 → trading at a premium.
- P/B Ratio: Current Price ₹1,796 / Book Value ₹238 ≈ 7.55 (premium valuation).
- PEG Ratio: 1.68 → moderately expensive relative to growth.
- Intrinsic Value: Slightly overvalued compared to peers, supported by strong fundamentals and consistent earnings.
🏢 Business Model & Competitive Advantage
- JB Chemicals & Pharmaceuticals operates in formulations, APIs, and contract manufacturing.
- Strong domestic presence with growing international footprint.
- Competitive advantage lies in diversified product portfolio, cost efficiency, and consistent profitability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹1,650–₹1,720.
- Long-Term Holding: Strong fundamentals, debt-free status, and high ROE/ROCE make JB Chemicals suitable for long-term investors.
✅ Positive
- Strong ROE (20.2%) and ROCE (25.9%).
- Debt-free balance sheet.
- Quarterly profit growth of 15.8%.
- DII holdings increased (+3.21%).
⚠️ Limitation
- P/E ratio (39.9) higher than industry average (30.6).
- P/B ratio (7.55) indicates premium valuation.
- Dividend yield (0.88%) is modest.
📉 Company Negative News
- Decline in FII holdings (-2.46%).
- Premium valuations may limit near-term upside.
📈 Company Positive News
- Quarterly profits improved steadily.
- DII holdings increased significantly, showing strong domestic institutional support.
- Technical indicators (MACD positive, RSI neutral at 52.1) show stable momentum.
🏭 Industry
- Industry PE at 30.6 suggests JB Chemicals trades at a premium.
- Pharma sector benefits from rising global demand and healthcare investments.
- Peers with lower valuations highlight JB Chemicals’ premium positioning.
🔎 Conclusion
JB Chemicals & Pharmaceuticals is a fundamentally strong, debt-free company with consistent profit growth and high ROE/ROCE.
Despite premium valuations, its strong fundamentals and sectoral demand make it attractive for long-term investors.
Accumulation near ₹1,650–₹1,720 is recommended for those seeking steady growth and exposure to the pharmaceutical sector.
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