JUBLINGREA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | JUBLINGREA | Market Cap | 9,913 Cr. | Current Price | 623 ₹ | High / Low | 852 ₹ |
| Stock P/E | 36.2 | Book Value | 158 ₹ | Dividend Yield | 0.80 % | ROCE | 12.8 % |
| ROE | 11.2 % | Face Value | 1.00 ₹ | DMA 50 | 682 ₹ | DMA 200 | 696 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.96 % | PAT Qtr | 44.0 Cr. | PAT Prev Qtr | 59.0 Cr. |
| RSI | 36.0 | MACD | -20.5 | Volume | 86,689 | Avg Vol 1Wk | 2,08,117 |
| Low price | 535 ₹ | High price | 852 ₹ | PEG Ratio | -2.16 | Debt to equity | 0.33 |
| 52w Index | 27.7 % | Qtr Profit Var | -26.8 % | EPS | 17.2 ₹ | Industry PE | 26.3 |
📊 Financials: JUBLINGREA presents moderate fundamentals with ROCE at 12.8% and ROE at 11.2%, reflecting average capital efficiency. Debt-to-equity ratio of 0.33 indicates manageable leverage. Quarterly PAT declined from 59.0 Cr. to 44.0 Cr., with a negative profit variation of -26.8%, highlighting earnings pressure. EPS of 17.2 ₹ provides earnings visibility, while dividend yield of 0.80% adds shareholder value.
💹 Valuation: Current P/E of 36.2 is above the industry average of 26.3, suggesting overvaluation. P/B ratio is ~3.94 (Current Price / Book Value), which is moderately expensive. PEG ratio of -2.16 signals weak growth prospects relative to valuation. Intrinsic value appears lower than CMP, limiting margin of safety for fresh investors.
🏢 Business Model & Competitive Advantage: JUBLINGREA operates in the food ingredients and specialty chemicals sector, serving FMCG and packaged food industries. Competitive strengths include diversified product portfolio, established client base, and moderate leverage. However, declining profits and stretched valuations reduce its competitive edge compared to peers with stronger growth metrics.
🎯 Entry Zone Recommendation: Current price of 623 ₹ is near its 52-week low of 535 ₹, reflecting weakness. A more attractive entry zone would be around 560–590 ₹, offering better risk-reward. Long-term investors may accumulate cautiously, given moderate fundamentals but weak growth outlook.
Positive
- ROCE (12.8%) and ROE (11.2%) reflect average efficiency.
- Debt-to-equity ratio of 0.33 indicates manageable leverage.
- Dividend yield of 0.80% adds shareholder value.
- Institutional inflows (FII +0.19%, DII +0.96%) show investor confidence.
Limitation
- P/E of 36.2 above industry average (26.3), suggesting overvaluation.
- Quarterly PAT decline from 59.0 Cr. to 44.0 Cr. (-26.8%).
- PEG ratio of -2.16 signals weak growth prospects.
- Current price below DMA 50 (682 ₹) and DMA 200 (696 ₹) reflects technical weakness.
Company Negative News
- Declining quarterly profits raise sustainability concerns.
- Weak technical indicators (RSI 36.0, MACD -20.5) show bearish sentiment.
Company Positive News
- Institutional inflows (FII and DII) reflect investor confidence.
- Dividend yield provides consistent shareholder return.
- Strong demand outlook from FMCG and packaged food industries.
Industry
- Food ingredients and specialty chemicals industry P/E at 26.3 reflects moderate valuations.
- Sector growth driven by rising demand in FMCG and packaged foods.
- Global consumption trends support long-term expansion.
Conclusion
⚖️ JUBLINGREA is moderately strong with manageable debt and institutional support but faces challenges from declining profits and stretched valuations. Current price offers limited upside, and accumulation is advisable only near 560–590 ₹ for better margin of safety. Long-term holding may yield moderate returns, supported by FMCG demand, though growth risks remain.
I can also compare JUBLINGREA’s valuation and efficiency metrics against peers like Aarti Industries or Galaxy Surfactants to highlight relative positioning if you’d like.