JUBLINGREA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials & Profitability

Profit Growth: PAT dropped from ₹89.9 Cr to ₹59.0 Cr QoQ, but YoY profit variation is a strong 80.1%, indicating solid long-term growth.

Return Metrics

ROE: 11.2% and ROCE: 12.8% — respectable, showing efficient capital deployment.

EPS: ₹18.2 — decent for a ₹709 stock, supporting valuation.

Debt Profile: Debt-to-equity at 0.34 — conservative and healthy for a specialty chemicals company.

Dividend Yield: 0.70% — modest, but adds shareholder value.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 39.0 Slightly above industry PE of 33.9 — mildly expensive.

P/B Ratio ~4.63 Elevated relative to book value ₹153.

PEG Ratio -2.32 Negative PEG suggests earnings contraction or unreliable growth forecast.

🔍 Conclusion: Valuation is slightly stretched, but not excessive. PEG ratio flags caution, though long-term fundamentals remain strong.

🧪 Business Model & Competitive Edge

Core Operations: Jubilant Ingrevia is a mid-cap specialty chemicals company serving pharma, nutrition, agrochemicals, and industrial sectors.

Competitive Advantage

Integrated life sciences platform with customized solutions.

Strong export footprint and diversified product mix.

Growth Outlook

Delivered 50.5% returns over 3 years.

Analysts forecast a 1-year price target of ₹945, implying ~29% upside

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Technical indicators suggest short-term weakness, but long-term potential remains intact

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📉 Technicals & Entry Zone

RSI: 40.5 — approaching oversold territory.

MACD: -6.78 — bearish momentum.

DMA Levels: Price below both 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹685–₹705 — near support levels and technical lows

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🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, sector tailwinds, and diversified exposure support long-term value.

Buy on Dips: Prefer entry below ₹705, especially if RSI dips below 40.

Monitor: Margin trends, export volumes, and specialty segment growth.

You can explore Jubilant Ingrevia’s technical forecast and price targets or its long-term growth outlook for deeper insights. Let me know if you'd like a peer comparison with Alkyl Amines or Aether Industries next.

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trendlyne.com

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stockinvest.us

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stockpricearchive.com

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