JBCHEPHARM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | JBCHEPHARM | Market Cap | 30,082 Cr. | Current Price | 1,876 ₹ | High / Low | 1,939 ₹ |
| Stock P/E | 41.4 | Book Value | 238 ₹ | Dividend Yield | 0.83 % | ROCE | 25.9 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,833 ₹ | DMA 200 | 1,756 ₹ |
| Chg in FII Hold | -0.75 % | Chg in DII Hold | -0.12 % | PAT Qtr | 179 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 53.3 | MACD | 11.3 | Volume | 68,152 | Avg Vol 1Wk | 1,89,053 |
| Low price | 1,303 ₹ | High price | 1,939 ₹ | PEG Ratio | 1.74 | Debt to equity | 0.01 |
| 52w Index | 90.0 % | Qtr Profit Var | 14.6 % | EPS | 46.5 ₹ | Industry PE | 29.0 |
📊 Financials: JBCHEPHARM demonstrates strong fundamentals with ROCE at 25.9% and ROE at 20.2%, highlighting efficient capital usage. Debt-to-equity is nearly negligible at 0.01, ensuring financial stability. Quarterly PAT slipped from 200 Cr. to 179 Cr., but overall profit variation remains positive at 14.6%. EPS of 46.5 ₹ supports consistent earnings power.
💹 Valuation: Current P/E of 41.4 is well above the industry average of 29.0, suggesting overvaluation. P/B ratio is ~7.9, which is steep compared to peers. PEG ratio of 1.74 indicates moderate growth relative to valuation. Intrinsic value appears lower than CMP, limiting margin of safety for fresh entry.
🏢 Business Model & Competitive Advantage: The company operates in the pharmaceutical sector with a diversified product portfolio and strong R&D focus. Its debt-free structure, high return ratios, and consistent dividend payouts provide resilience. Competitive advantage lies in efficient capital allocation and global presence.
🎯 Entry Zone Recommendation: Current price of 1,876 ₹ is close to its 52-week high (1,939 ₹). A more attractive entry zone would be around 1,600–1,700 ₹ (near DMA 200 and below fair value). Long-term investors may accumulate on dips for steady compounding returns.
Positive
- High ROCE (25.9%) and ROE (20.2%) reflect strong profitability.
- Debt-free balance sheet ensures financial stability.
- Consistent dividend yield of 0.83% adds shareholder value.
- Strong industry positioning with diversified pharma portfolio.
Limitation
- High P/E (41.4) compared to industry average (29.0).
- PAT decline in latest quarter (200 Cr. → 179 Cr.).
- Reduced FII (-0.75%) and DII (-0.12%) holdings.
- Valuation premium limits near-term upside.
Company Negative News
- Quarterly profit decline raises concerns about growth momentum.
- Lower institutional investor confidence reflected in reduced holdings.
Company Positive News
- Strong long-term growth trajectory with 14.6% profit variation.
- Healthy technical support around DMA 200 (1,756 ₹).
- Resilient fundamentals with consistent EPS of 46.5 ₹.
Industry
- Pharmaceutical industry P/E at 29.0 indicates sector-wide growth potential.
- High demand for generics and specialty drugs supports long-term expansion.
- Global healthcare spending trends favor sustained revenue growth.
Conclusion
⚖️ JBCHEPHARM is fundamentally strong with excellent return ratios and negligible debt. However, valuations are stretched compared to industry peers. Long-term investors may consider accumulating during corrections around 1,600–1,700 ₹ for better margin of safety. Holding for 3–5 years could yield steady compounding returns given the company’s robust business model and industry outlook.
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