JUBLINGREA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | JUBLINGREA | Market Cap | 11,369 Cr. | Current Price | 714 ₹ | High / Low | 852 ₹ |
| Stock P/E | 43.3 | Book Value | 158 ₹ | Dividend Yield | 0.70 % | ROCE | 12.8 % |
| ROE | 11.2 % | Face Value | 1.00 ₹ | DMA 50 | 643 ₹ | DMA 200 | 664 ₹ |
| Chg in FII Hold | 0.34 % | Chg in DII Hold | 0.76 % | PAT Qtr | 69.4 Cr. | PAT Prev Qtr | 44.0 Cr. |
| RSI | 65.1 | MACD | 33.4 | Volume | 3,67,980 | Avg Vol 1Wk | 2,49,548 |
| Low price | 535 ₹ | High price | 852 ₹ | PEG Ratio | -2.58 | Debt to equity | 0.33 |
| 52w Index | 56.4 % | Qtr Profit Var | -13.9 % | EPS | 15.9 ₹ | Industry PE | 28.9 |
Financials: Jubilant Ingrevia (JUBLINGREA) shows moderate fundamentals with ROCE at 12.8% and ROE at 11.2%. EPS of ₹15.9 supports profitability, while quarterly PAT improved to ₹69.4 Cr. from ₹44.0 Cr. Debt-to-equity ratio of 0.33 indicates manageable leverage.
Valuation: P/E of 43.3 is well above industry average (28.9), suggesting premium valuation. PEG ratio of -2.58 highlights weak growth-adjusted valuation. Dividend yield of 0.70% adds modest investor appeal.
Business Model: Jubilant Ingrevia operates in specialty chemicals and life sciences, with strengths in diversified product lines and global demand. Competitive advantage lies in niche chemical segments, though profitability remains under pressure.
Entry Zone: Attractive entry between ₹690–₹710 near DMA 50 (₹643) and DMA 200 (₹664). Long-term holding favorable if earnings momentum sustains and valuations normalize.
Positive
- EPS of ₹15.9 supports profitability base
- PAT improved from ₹44.0 Cr. to ₹69.4 Cr.
- Debt-to-equity ratio of 0.33 reflects financial stability
- Institutional inflows (FII +0.34%, DII +0.76%) show confidence
- Technical indicators (RSI 65.1, MACD 33.4) reflect bullish momentum
Limitation
- High P/E (43.3) vs industry average (28.9) indicates overvaluation
- Negative PEG ratio (-2.58) signals weak growth-adjusted valuation
- ROE (11.2%) and ROCE (12.8%) are modest compared to peers
- Quarterly profit variation (-13.9%) highlights earnings volatility
Company Negative News
- Earnings volatility with profit decline (-13.9%)
- Valuation stretched relative to industry peers
Company Positive News
- PAT growth quarter-on-quarter supports earnings momentum
- Institutional inflows add confidence
- Technical indicators show bullish bias
Industry
- Specialty chemicals sector benefits from global demand and industrial applications
- Industry P/E at 28.9 highlights Jubilant Ingrevia trading at premium valuation
Conclusion
Jubilant Ingrevia presents moderate fundamentals with strong sector positioning and institutional support, but suffers from stretched valuations and earnings volatility. Entry around ₹690–₹710 offers a cautious opportunity. Long-term investors should monitor profitability trends and valuation normalization for sustained holding.
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