JUBLINGREA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

Here’s a well-seasoned take on Jubilant Ingrevia (JUBLINGREA) — a specialty chemicals and life sciences player that’s starting to spice things up 🌱🧪

📊 Core Financials Overview

Profitability Metrics

ROE: 8.87%, ROCE: 11.1% — modest, yet acceptable for a chemistry-heavy business undergoing expansion.

EPS: ₹15.8 — decent earnings power for mid-cap scale.

Earnings Momentum

PAT Qtr: ₹74 Cr. vs ₹69.4 Cr. — small bump, yet Qtr Profit Var +153% YoY shows dramatic recovery.

Balance Sheet Position

Debt-to-equity: 0.26 — low leverage, room for growth investments.

Dividend Yield: 0.62% — modest but stable for long-term holders.

💸 Valuation Indicators

Metric Value Insights

P/E Ratio 51.0 🟥 Expensive — significantly higher than industry PE of 34.4

P/B Ratio ~4.37 Implies premium pricing for intangible value

PEG Ratio -2.61 ⚠️ Negative — suggests earnings volatility or inflated valuation

📌 Interpretation: Market seems to be pricing in forward momentum despite past earnings variability — a bit of a sentiment premium in play.

🧠 Business Model & Strategic Edge

Operates across specialty chemicals, nutrition, and APIs (active pharma ingredients).

Strong emphasis on R&D and biotech inputs — serving pharma, agro, and life sciences.

Positioned well for India’s push into import substitution & chemical exports.

FII Holding down (-0.16%), but DII up (+5.90%) — rising domestic institutional confidence despite muted global sentiment.

📍 Technical View & Entry Zone

Current Price: ₹804

Above both DMA-50 (₹764) and DMA-200 (₹707) — bullish alignment.

RSI: 54.2 — neutral to mildly bullish.

MACD: +13.8 — shows momentum picking up.

📌 Suggested Entry Zone

Accumulate within ₹770–₹800 range on dips or consolidations.

Strong support near ₹745, resistance around ₹850–885.

🕰️ Long-Term Holding Strategy

Long-term demand for green chemistry and pharma intermediates plays into JUBLINGREA’s strengths.

Valuation is elevated — suitable only for 3–5 year horizons, especially for investors betting on India’s chemical export boom.

Monitor quarterly margins and global input cost trends carefully.

Would you like to compare it with peers like Anupam Rasayan, Clean Science, or Navin Fluorine to round out a specialty chemicals watchlist? 📦🔍

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