JUBLINGREA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | JUBLINGREA | Market Cap | 11,518 Cr. | Current Price | 723 ₹ | High / Low | 852 ₹ |
| Stock P/E | 43.9 | Book Value | 158 ₹ | Dividend Yield | 0.69 % | ROCE | 12.8 % |
| ROE | 11.2 % | Face Value | 1.00 ₹ | DMA 50 | 682 ₹ | DMA 200 | 673 ₹ |
| Chg in FII Hold | 0.34 % | Chg in DII Hold | 0.76 % | PAT Qtr | 69.4 Cr. | PAT Prev Qtr | 44.0 Cr. |
| RSI | 63.6 | MACD | 21.2 | Volume | 6,19,512 | Avg Vol 1Wk | 2,16,520 |
| Low price | 535 ₹ | High price | 852 ₹ | PEG Ratio | -2.61 | Debt to equity | 0.33 |
| 52w Index | 59.3 % | Qtr Profit Var | -13.9 % | EPS | 15.9 ₹ | Industry PE | 29.2 |
📊 Core Financials: Jubilant Ingrevia (JUBLINGREA) shows moderate fundamentals. ROCE at 12.8% and ROE at 11.2% reflect average capital efficiency. Debt-to-equity ratio of 0.33 indicates manageable leverage. Quarterly PAT of ₹69.4 Cr. improved from ₹44.0 Cr., though YoY profit variation (-13.9%) highlights earnings pressure. EPS of ₹15.9 supports profitability but remains modest relative to price levels.
💰 Valuation Indicators: Current P/E of 43.9 is above the industry average of 29.2, suggesting overvaluation. P/B ratio of ~4.6 (723/158) reflects premium pricing. PEG ratio of -2.61 indicates negative growth prospects. Dividend yield of 0.69% provides modest income return. Intrinsic value appears lower than current price, requiring cautious entry.
🏢 Business Model & Competitive Advantage: Jubilant Ingrevia operates in specialty chemicals, nutrition, and life sciences. Its competitive advantage lies in diversified product offerings and strong presence in niche chemical segments. However, profitability remains inconsistent, and valuations are stretched compared to peers.
📈 Entry Zone: RSI at 63.6 suggests overbought conditions, while MACD positive indicates bullish momentum. Current price of ₹723 is near DMA levels (50 DMA: ₹682, 200 DMA: ₹673). Entry between ₹680–₹700 may be favorable for long-term investors.
⏳ Long-Term Holding Guidance: Jubilant Ingrevia benefits from industry demand and diversified business model but faces challenges from expensive valuations and modest returns. Suitable for cautious long-term investors who accumulate near support levels.
Positive
- 🌟 Diversified presence in specialty chemicals and life sciences
- 🌟 ROCE (12.8%) and ROE (11.2%) reflect moderate efficiency
- 🌟 Increase in FII (+0.34%) and DII (+0.76%) holdings
- 🌟 Quarterly PAT improvement (₹44 Cr. → ₹69.4 Cr.)
Limitation
- ⚠️ P/E (43.9) above industry average (29.2)
- ⚠️ PEG ratio of -2.61 indicates negative growth prospects
- ⚠️ Dividend yield of 0.69% is modest
- ⚠️ YoY profit variation (-13.9%) shows earnings pressure
Company Negative News
- 📉 Decline in YoY profits (-13.9%)
Company Positive News
- 📈 Quarterly profit improvement
- 📈 Increase in both FII and DII holdings
- 📈 Strong 52-week performance (+59.3%)
Industry
- 🌐 Specialty chemicals industry driven by pharma, nutrition, and industrial demand
- 🌐 Industry P/E at 29.2 reflects moderate valuation
- 🌐 Competition from peers like Aarti Industries, Deepak Nitrite, and SRF
Conclusion
✅ Jubilant Ingrevia shows moderate fundamentals with diversified business presence but faces challenges from expensive valuations and modest returns. Entry between ₹680–₹700 is favorable for cautious long-term investors. While industry demand supports resilience, careful accumulation is advised due to earnings volatility and stretched valuation metrics.
Would you like me to also compare Jubilant Ingrevia with peers like Aarti Industries, Deepak Nitrite, or SRF to highlight sector positioning?