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JUBLPHARMA - Fundamental Analysis: Financial Health & Valuation

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Rating: 2.9

Last Updated Time : 04 May 26, 11:18 am

Fundamental Rating: 2.9

Stock Code JUBLPHARMA Market Cap 14,761 Cr. Current Price 927 ₹ High / Low 1,250 ₹
Book Value 141 ₹ Dividend Yield 0.54 % ROCE 2.91 % ROE 1.04 %
Face Value 1.00 ₹ DMA 50 904 ₹ DMA 200 981 ₹ Chg in FII Hold -0.06 %
Chg in DII Hold 0.40 % PAT Qtr 6.60 Cr. PAT Prev Qtr -48.0 Cr. RSI 59.3
MACD 19.7 Volume 66,902 Avg Vol 1Wk 1,30,628 Low price 784 ₹
High price 1,250 ₹ Debt to equity 0.02 52w Index 30.6 % Qtr Profit Var 154 %
EPS 1.23 ₹ Industry PE 30.1

Financials: Jubilant Pharmova (JUBLPHARMA) shows weak fundamentals with ROCE at 2.91% and ROE at 1.04%. EPS of ₹1.23 is very low, though quarterly PAT improved to ₹6.60 Cr. from a loss of ₹48.0 Cr. Debt-to-equity ratio of 0.02 reflects a nearly debt-free balance sheet.

Valuation: P/E ratio is not meaningful due to weak earnings, while industry average stands at 30.1. PEG ratio unavailable, limiting growth-adjusted valuation insights. Dividend yield of 0.54% adds minor investor appeal.

Business Model: Jubilant Pharmova operates in pharmaceuticals and life sciences, with strengths in diversified product lines. Competitive advantage lies in niche pharma segments, but profitability remains under pressure.

Entry Zone: Reasonable entry between ₹900–₹930 near DMA 50 (₹904). Long-term holding requires caution due to weak fundamentals and earnings volatility.

Positive

- PAT recovery from a loss (-₹48 Cr.) to profit (+₹6.6 Cr.)

- Debt-to-equity ratio of 0.02 reflects strong balance sheet stability

- Dividend yield of 0.54% adds modest income support

- Institutional inflows (DII +0.40%) show domestic confidence

Limitation

- Very weak ROE (1.04%) and ROCE (2.91%) indicate poor efficiency

- EPS of ₹1.23 reflects weak profitability

- P/E ratio not meaningful due to low earnings

- RSI at 59.3 suggests nearing overbought territory

Company Negative News

- Earnings volatility with weak profitability base

- Decline in foreign institutional holdings (-0.06%)

Company Positive News

- PAT recovery from losses highlights operational improvement

- Technical indicators (MACD 19.7) show bullish bias

- Domestic institutional inflows (+0.40%) add support

Industry

- Pharma sector trades at P/E of 30.1, highlighting Jubilant Pharmova’s weak relative valuation

- Industry outlook remains positive with healthcare demand, but company-specific fundamentals lag

Conclusion

Jubilant Pharmova presents weak fundamentals with poor efficiency metrics and volatile earnings, though balance sheet stability and PAT recovery provide some support. Entry around ₹900–₹930 offers speculative opportunity. Long-term investors should monitor profitability recovery and valuation normalization before committing.

Would you like me to extend this into a peer benchmarking overlay comparing Jubilant Pharmova against peers like Sun Pharma, Dr. Reddy’s, and Cipla, so you can evaluate relative valuation and efficiency in a modular HTML format?

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