JBCHEPHARM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

📊 Core Financials Analysis

Profit Growth: Quarterly profit variation of 15.5% is modest, indicating stable but not explosive growth.

Profitability

ROCE: 25.8% — excellent, reflects strong capital efficiency.

ROE: 20.1% — solid, shows good shareholder returns.

Debt Position

Debt-to-Equity: 0.01 — virtually debt-free, a major strength.

Cash Flow: While not explicitly stated, low debt and high ROCE suggest healthy operating cash flows.

📉 Valuation Metrics

Metric Value Interpretation

P/E Ratio 44.1 High vs. industry average (34.0), implies premium valuation

P/B Ratio ~8.2 Reasonable for high-quality pharma

PEG Ratio 2.06 Above 1 — suggests overvaluation relative to growth

EPS ₹42.4 Strong earnings base

Intrinsic Value Likely below CMP Indicates limited upside at current levels

🧠 Business Model & Competitive Edge

Business Model: J.B. Chemicals & Pharmaceuticals operates in branded formulations, generics, and contract manufacturing, with a strong presence in domestic and international markets.

Competitive Advantage

Strong brand portfolio and legacy products.

Near-zero debt enhances financial flexibility.

High ROCE and ROE reflect operational excellence.

However, recent decline in PAT and high PEG ratio suggest growth may be priced in.

📌 Entry Zone & Investment Guidance

Current Price: ₹1,803

DMA 50: ₹1,679 — short-term support

DMA 200: ₹1,693 — long-term support

RSI: 71.8 — overbought zone

MACD: Positive — bullish momentum

🔍 Suggested Entry Zone: ₹1,650–₹1,700 This range offers better valuation comfort and aligns with technical support levels.

📈 Long-Term Holding Guidance

Ideal for long-term investors seeking stable, high-quality pharma exposure.

Accumulate on dips; avoid fresh entry above ₹1,850 unless backed by strong earnings growth.

Monitor quarterly results and volume trends for signs of sustained momentum.

Would you like a side-by-side comparison with IPCA or other mid-cap pharma players?

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