JUBLPHARMA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: Jubilant Pharmova Ltd. (JUBLPHARMA)

Rating: 3.3

Jubilant Pharmova is a mid-cap pharmaceutical company with diversified operations across radiopharma, CDMO, generics, and proprietary drugs. While its strategic positioning and improving fundamentals are encouraging, current valuation and earnings volatility suggest a cautious long-term approach.

✅ Strengths

Diversified Portfolio: Strong presence in radiopharma, allergy immunotherapy, and CDMO segments

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EPS of ₹28.9: Solid earnings base supports valuation.

ROE (9.50%) & ROCE (9.54%): Reasonable capital efficiency, though not exceptional.

Low Debt-to-Equity (0.44): Financially stable with manageable leverage.

MACD Positive & RSI Neutral (44.5): Mild bullish momentum.

DII Holding Surge (+2.47%): Strong domestic institutional confidence.

❌ Concerns

High P/E (38.1) vs Industry PE (34.0): Trading at a premium, which may limit upside.

PEG Ratio (3.75): Indicates overvaluation relative to growth.

Dividend Yield (0.43%): Modest income generation.

Quarterly PAT Decline (–3.83%): Earnings stagnation.

Trading Above DMA-50 & DMA-200: May be overextended in short term.

🎯 Ideal Entry Price Zone

₹1,020–₹1,080 This range aligns with DMA-200 and offers a cushion below current levels. A deeper dip toward ₹980 would be ideal for accumulation.

📈 Strategy for Existing Holders

🕒 Holding Period

3–5 years, especially if ROE improves to >12% and PEG normalizes below 1.5.

Monitor quarterly earnings, margin expansion, and specialty segment growth.

✂️ Exit Strategy

Partial exit near ₹1,290–₹1,310, especially if RSI crosses 65 and MACD flattens.

Full exit if

ROE drops below 7%

PAT stagnates for 3+ quarters

PEG remains above 2.5

Dividend yield falls below 0.3%

Would you like to compare Jubilant Pharmova with peers like Alembic Pharma or Granules India to assess relative valuation and growth potential? That could sharpen your conviction. 💊

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