JUBLPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.2
| Stock Code | JUBLPHARMA | Market Cap | 15,435 Cr. | Current Price | 968 ₹ | High / Low | 1,250 ₹ |
| Book Value | 141 ₹ | Dividend Yield | 0.52 % | ROCE | 2.91 % | ROE | 1.04 % |
| Face Value | 1.00 ₹ | DMA 50 | 1,039 ₹ | DMA 200 | 1,058 ₹ | Chg in FII Hold | -0.60 % |
| Chg in DII Hold | 0.70 % | PAT Qtr | -48.0 Cr. | PAT Prev Qtr | 4.10 Cr. | RSI | 41.4 |
| MACD | -30.5 | Volume | 58,540 | Avg Vol 1Wk | 1,11,594 | Low price | 802 ₹ |
| High price | 1,250 ₹ | Debt to equity | 0.02 | 52w Index | 37.0 % | Qtr Profit Var | -436 % |
| EPS | 1.15 ₹ | Industry PE | 29.0 |
📊 Financials: JUBLPHARMA shows weak fundamentals with ROCE at 2.91% and ROE at 1.04%, reflecting poor capital efficiency. Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet, but profitability remains very low. Quarterly PAT turned negative (-48 Cr.) compared to a small profit of 4.10 Cr. in the previous quarter, with a steep profit variation of -436%. EPS of 1.15 ₹ is extremely low relative to market cap, limiting shareholder value creation.
💹 Valuation: Stock P/E is not meaningful due to negative earnings, making valuation unattractive. P/B ratio is ~6.86 (Current Price / Book Value), which is expensive compared to peers. PEG ratio is unavailable, but weak earnings and negative profitability suggest poor growth prospects. Intrinsic value appears much lower than CMP, offering little margin of safety.
🏢 Business Model & Competitive Advantage: JUBLPHARMA operates in the pharmaceutical sector, focusing on formulations and specialty products. While scale and brand presence provide resilience, weak return ratios, declining profits, and stretched valuations reduce its competitive edge compared to peers with stronger fundamentals.
🎯 Entry Zone Recommendation: Current price of 968 ₹ is well above its 52-week low of 802 ₹ but far below its high of 1,250 ₹, reflecting weakness. A more attractive entry zone would be around 850–900 ₹, offering better risk-reward. Long-term investors should be cautious and accumulate only on significant corrections, given poor profitability trends.
Positive
- Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet.
- DII holdings increased by 0.70%, showing domestic institutional support.
- Dividend yield of 0.52% provides minor shareholder return.
Limitation
- ROCE (2.91%) and ROE (1.04%) indicate poor efficiency.
- Quarterly PAT turned negative (-48 Cr.), highlighting weak profitability.
- P/B ratio of ~6.86 is expensive compared to peers.
- EPS of 1.15 ₹ is very low relative to market cap.
Company Negative News
- Sharp decline in quarterly profits with negative PAT.
- FII holdings decreased by 0.60%, reflecting reduced foreign investor confidence.
Company Positive News
- DII inflows (+0.70%) suggest domestic support despite weak fundamentals.
- Debt-free structure provides financial flexibility.
Industry
- Pharmaceutical industry P/E at 29.0 reflects moderate valuations.
- Sector growth driven by healthcare demand, exports, and specialty formulations.
- Government initiatives in healthcare support long-term expansion.
Conclusion
⚖️ JUBLPHARMA is fundamentally weak with low return ratios, negative profitability, and stretched valuations. Despite a debt-free balance sheet and modest dividend yield, the stock trades at unsustainable multiples. Investors should avoid fresh entry at current levels and consider accumulation only near 850–900 ₹ for better margin of safety. Long-term holding carries risk unless profitability improves significantly and valuations normalize.
I can also contrast JUBLPHARMA’s fundamentals against other mid-cap pharma peers like Alembic Pharma or Granules India to highlight relative positioning if you’d like.