JUBLPHARMA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.3

📊 Core Financials & Profitability

Profitability: PAT improved from ₹0.90 Cr to ₹4.10 Cr QoQ, but remains modest for a ₹17,787 Cr market cap. EPS of ₹2.21 is extremely low relative to the stock price.

Return Metrics

ROE: 1.04% and ROCE: 2.91% — very weak, indicating poor capital efficiency.

Debt Profile: Debt-to-equity at 0.15 — conservative and healthy, offering financial flexibility.

Dividend Yield: 0.45% — modest, but consistent with a stable payout history.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 855 Astronomically high vs. industry PE of 33.4 — unjustified by earnings.

P/B Ratio ~7.63 Expensive relative to book value ₹146.

PEG Ratio -26.1 Deeply negative — signals unreliable or contracting earnings growth.

🔍 Conclusion: The stock is significantly overvalued based on earnings and growth metrics. Valuation is speculative and not supported by fundamentals.

🧬 Business Model & Competitive Edge

Core Operations: Jubilant Pharmova operates in radiopharma, allergy immunotherapy, sterile injectables, generics, and contract research.

Competitive Advantage

Diversified pharma segments with global reach.

Strong presence in CDMO (Contract Development and Manufacturing Organization) space.

Growth Outlook

Despite weak recent earnings, analysts still see long-term potential due to its innovation pipeline and global partnerships.

Recent analysis suggests the stock is “economical” in quality but “very expensive” in valuation, with a “buy at lower levels” stance.

📉 Technicals & Entry Zone

RSI: 54.4 — neutral, no strong momentum.

MACD: 4.43 — mildly bullish.

DMA Levels: Price near both 50-DMA and 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹1,050–₹1,080 — closer to 200-DMA, offering better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Only if you believe in the company’s innovation pipeline and global expansion.

Avoid Fresh Entry at Current Levels: Valuation is too rich; wait for earnings to catch up or price to correct.

Monitor: USFDA inspections, CDMO growth, and margin recovery.

You can explore JUBLPHARMA’s 2025–2030 price targets and valuation outlook for deeper insights. Let me know if you'd like a peer comparison with Syngene or Divi’s Labs next.

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