JBCHEPHARM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | JBCHEPHARM | Market Cap | 32,809 Cr. | Current Price | 2,043 ₹ | High / Low | 2,195 ₹ |
| Stock P/E | 45.1 | Book Value | 238 ₹ | Dividend Yield | 0.76 % | ROCE | 25.9 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 2,004 ₹ | DMA 200 | 1,872 ₹ |
| Chg in FII Hold | 1.45 % | Chg in DII Hold | -1.97 % | PAT Qtr | 179 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 54.9 | MACD | 3.49 | Volume | 1,49,338 | Avg Vol 1Wk | 2,54,920 |
| Low price | 1,495 ₹ | High price | 2,195 ₹ | PEG Ratio | 1.89 | Debt to equity | 0.01 |
| 52w Index | 78.4 % | Qtr Profit Var | 14.6 % | EPS | 46.5 ₹ | Industry PE | 30.1 |
Financials: JB Chemicals & Pharmaceuticals (JBCHEPHARM) demonstrates strong fundamentals with ROCE at 25.9% and ROE at 20.2%. EPS of ₹46.5 reflects solid profitability. Debt-to-equity ratio of 0.01 indicates a near debt-free balance sheet. Quarterly PAT of ₹179 Cr. shows stability compared to ₹200 Cr. in the previous quarter.
Valuation: P/E of 45.1 is significantly above industry average (30.1), suggesting premium valuation. PEG ratio of 1.89 indicates fair growth-adjusted pricing. Dividend yield of 0.76% adds modest income support.
Business Model: JBCHEPHARM operates in the pharmaceutical sector with strengths in formulations and APIs. Competitive advantage lies in diversified product portfolio, strong export presence, and consistent profitability.
Entry Zone: Reasonable entry between ₹1,950–₹2,000 near DMA 50 (₹2,004). Long-term holding favorable due to strong fundamentals, though valuation remains expensive.
Positive
- Strong ROCE (25.9%) and ROE (20.2%) highlight efficient capital use
- EPS of ₹46.5 supports valuation strength
- Low debt-to-equity ratio (0.01) ensures financial stability
- FII holdings increased (+1.45%), showing foreign investor confidence
Limitation
- High P/E (45.1) compared to industry average (30.1) indicates overvaluation
- Quarterly PAT declined from ₹200 Cr. to ₹179 Cr.
- DII holdings reduced (-1.97%), showing cautious domestic sentiment
- Dividend yield of 0.76% is modest
Company Negative News
- Marginal decline in quarterly profits
- Domestic institutional investors reducing stake
Company Positive News
- Strong quarterly profit variation (+14.6%) year-on-year
- Increased foreign institutional investor confidence
- Technical indicators (RSI 54.9, MACD 3.49) show balanced momentum
Industry
- Pharma sector outlook remains positive with global demand resilience
- Industry P/E at 30.1 highlights JBCHEPHARM trading at premium valuation
Conclusion
JBCHEPHARM presents strong fundamentals with high ROE/ROCE, low debt, and consistent profitability. However, stretched valuations limit upside potential. Entry around ₹1,950–₹2,000 offers a balanced risk-reward opportunity. Long-term investors can benefit from sector resilience and company stability, while monitoring valuation compression and earnings growth.
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