JBCHEPHARM - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of JB Chemicals & Pharmaceuticals Ltd (JBCHEPHARM), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and factored in recent acquisition news, quarterly performance, and technical signals as of September 2025.

📊 Fundamental Analysis of JB Chemicals & Pharmaceuticals Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹198 Cr vs ₹150 Cr — solid sequential growth (↑14.2%).

EPS: ₹43.5 — strong earnings base.

ROE: 20.2%, ROCE: 25.9% — excellent capital efficiency, well above industry norms.

Leverage & Liquidity

Debt-to-equity: 0.00 — debt-free, indicating robust financial health.

Dividend Yield: 0.92% — consistent payouts, with ₹15.5/share dividend declared in FY25.

Cash Flow & Stability

Net income (TTM): ₹685 Cr; revenue (TTM): ₹4,008 Cr

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Strong delivery percentage (~69.7%) suggests investor conviction

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Torrent Pharma’s acquisition of a 2.41% stake signals strategic interest and sector consolidation

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 39.1 Slightly overvalued vs industry PE of 33.4

P/B Ratio ~7.8 High — reflects premium on brand and earnings quality

PEG Ratio 1.64 Fair — growth moderately justifies valuation

Intrinsic Value ~₹1,600–₹1,650 Slightly below current price — limited upside

💊 Business Model & Competitive Edge

Segment Focus: Formulations, APIs, and contract manufacturing across therapeutic areas — cardiac, gastrointestinal, and anti-infectives.

Moat: Strong domestic brand portfolio (e.g., Metrogyl, Cilacar), export footprint, and R&D capabilities.

Growth Drivers

Torrent Pharma’s strategic stake and integration plans

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Expansion in regulated markets and institutional business.

High-quality score and consistent margin profile.

📈 Technical & Entry Guidance

Current Price: ₹1,691

DMA 50/200: ₹1,705 / ₹1,699 — trading below short-term average.

RSI: 43.6 — mildly oversold.

MACD: -5.87 — bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹1,620–₹1,660 — near intrinsic value and RSI support.

Stop Loss: ₹1,580

Target: ₹1,850–₹1,950 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, zero debt, and strategic interest from Torrent Pharma support long-term value.

Buy on dips: Preferably near ₹1,650 zone.

Growth Triggers: Stake acquisition, export expansion, and product pipeline.

⭐ Fundamental Rating

4.3

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stockanalysis.com

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www.stocks-buy.com

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