⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JUBLPHARMA - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 2.6
📊 Financial Overview
- Profitability: PAT dropped from ₹4.10 Cr to ₹-48.0 Cr QoQ, showing a steep -436% variation.
- Return Metrics: ROE at 1.04% and ROCE at 2.91% are significantly below industry standards.
- Valuation: P/E of 839 is extremely high compared to the industry average of 33.1, indicating severe overvaluation.
- P/B Ratio: With a book value of ₹141 and price of ₹1,096, P/B is ~7.8, reflecting a steep premium.
- PEG Ratio: -25.6 signals earnings contraction and distorted growth valuation.
- Debt Profile: Debt-to-equity ratio of 0.02 shows excellent financial discipline and minimal leverage.
- Momentum: RSI at 47.4 and MACD at 6.41 suggest neutral sentiment with mild bullish undertones.
🏢 Business Model & Competitive Edge
- Jubilant Pharmova operates in pharmaceuticals, contract research, and APIs with a global footprint.
- Its diversified segments include specialty pharma and CRAMS, offering long-term strategic potential.
- However, recent earnings volatility and margin pressure have weakened its competitive positioning.
💡 Entry Zone Recommendation
- Current price is near DMA 50 and DMA 200, indicating consolidation.
- Suggested Entry Zone: ₹1,020–₹1,060 for accumulation on dips.
- Long-term holding only advisable if profitability stabilizes and valuation normalizes.
✅ Positive
- Debt-to-equity ratio of 0.02 reflects strong financial discipline.
- DII holdings increased by 1.01%, showing domestic investor confidence.
- Global presence and diversified pharma segments offer strategic resilience.
⚠️ Limitation
- Negative PAT and steep profit contraction raise serious concerns.
- Extremely high P/E and PEG ratios suggest valuation distortion.
- ROE and ROCE are far below industry benchmarks.
📉 Company Negative News
- FII holdings declined by 0.84%, indicating reduced foreign investor confidence.
- Recent earnings miss and margin pressure have impacted sentiment.
📈 Company Positive News
- Strong domestic institutional support and low debt profile.
- Operational focus on CRAMS and specialty pharma gaining strategic relevance.
🏭 Industry
- Pharma industry benefits from global healthcare demand and innovation in specialty drugs.
- Industry P/E of 33.1 supports moderate valuation for quality players.
🧾 Conclusion
- Jubilant Pharmova is a strategically positioned pharma player facing short-term profitability and valuation challenges.
- Entry near ₹1,020–₹1,060 may suit high-risk investors betting on turnaround.
- Monitor earnings recovery and institutional flows for sustained upside.
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