JUBLPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | JUBLPHARMA | Market Cap | 13,248 Cr. | Current Price | 831 ₹ | High / Low | 1,250 ₹ |
| Book Value | 141 ₹ | Dividend Yield | 0.60 % | ROCE | 2.91 % | ROE | 1.04 % |
| Face Value | 1.00 ₹ | DMA 50 | 911 ₹ | DMA 200 | 1,006 ₹ | Chg in FII Hold | -0.60 % |
| Chg in DII Hold | 0.70 % | PAT Qtr | 6.60 Cr. | PAT Prev Qtr | -48.0 Cr. | RSI | 39.3 |
| MACD | -23.5 | Volume | 94,659 | Avg Vol 1Wk | 1,21,001 | Low price | 784 ₹ |
| High price | 1,250 ₹ | Debt to equity | 0.02 | 52w Index | 10.2 % | Qtr Profit Var | 154 % |
| EPS | 1.23 ₹ | Industry PE | 27.2 |
💹 Core Financials: Jubilant Pharmova shows weak profitability with ROE at 1.04% and ROCE at 2.91%, reflecting poor efficiency. Debt-to-equity is very low at 0.02, indicating strong financial discipline. Quarterly PAT improved to ₹6.60 Cr. from a loss of ₹48.0 Cr., showing recovery momentum. EPS stands at ₹1.23, which is modest relative to price levels.
📊 Valuation Indicators: P/E ratio is not meaningful due to weak earnings, but relative to industry PE of 27.2, the stock appears expensive given low profitability. P/B ratio is ~5.9 (Price ₹831 / Book Value ₹141), which is high. PEG ratio is unavailable, reflecting inconsistent earnings growth. Dividend yield of 0.60% provides limited income support.
🏢 Business Model & Advantage: Jubilant Pharmova operates in pharmaceuticals, contract research, and specialty services. Its competitive advantage lies in diversified offerings across pharma and life sciences. However, profitability ratios remain weak, and earnings volatility limits margin of safety despite sectoral growth potential.
📈 Entry Zone & Long-Term Holding: With RSI at 39.3 (near oversold zone) and price consolidating near support at ₹800–₹830, accumulation may be considered cautiously. Long-term holding requires monitoring of profitability improvements, as current valuations are stretched relative to weak earnings.
Positive
- Debt-to-equity ratio of 0.02 ensures financial stability.
- Quarterly PAT improved from a loss of ₹48.0 Cr. to a profit of ₹6.60 Cr.
- DII holdings increased by 0.70%, reflecting domestic institutional support.
Limitation
- ROE (1.04%) and ROCE (2.91%) are very weak compared to peers.
- P/B ratio of 5.9 is high relative to fundamentals.
- EPS of ₹1.23 is modest, limiting valuation justification.
Company Negative News
- FII holdings decreased by 0.60%, showing reduced foreign investor confidence.
- Stock corrected from 52-week high ₹1,250 to current ₹831.
Company Positive News
- Quarterly PAT recovery reflects operational improvement.
- DII holdings increased, showing domestic institutional support.
Industry
- Pharma industry trades at an average P/E of 27.2, but Jubilant Pharmova’s weak earnings make P/E less meaningful.
- Sector outlook remains positive with demand for pharma and life sciences services.
Conclusion
Jubilant Pharmova demonstrates recovery momentum but suffers from weak profitability and stretched valuations. Entry near ₹800–₹830 offers a cautious opportunity. Long-term investors should allocate carefully, focusing on sectoral growth while monitoring earnings consistency and valuation risks.
Would you like me to extend this into a peer benchmarking overlay (Jubilant Pharmova vs. Sun Pharma, Dr. Reddy’s, Cipla) to highlight comparative valuation, leverage, and profitability strength in the pharma sector?