JBCHEPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | JBCHEPHARM | Market Cap | 30,382 Cr. | Current Price | 1,892 ₹ | High / Low | 1,939 ₹ |
| Stock P/E | 41.8 | Book Value | 238 ₹ | Dividend Yield | 0.82 % | ROCE | 25.9 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,839 ₹ | DMA 200 | 1,759 ₹ |
| Chg in FII Hold | -0.76 % | Chg in DII Hold | -0.12 % | PAT Qtr | 179 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 56.0 | MACD | 11.8 | Volume | 3,25,819 | Avg Vol 1Wk | 1,97,811 |
| Low price | 1,303 ₹ | High price | 1,939 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.01 |
| 52w Index | 92.5 % | Qtr Profit Var | 14.6 % | EPS | 46.5 ₹ | Industry PE | 29.1 |
📊 JB Chemicals & Pharmaceuticals (JBCHEPHARM) shows strong fundamentals with high ROCE (25.9%) and ROE (20.2%), low debt, and consistent profitability. The stock is trading above both 50 DMA (1,839 ₹) and 200 DMA (1,759 ₹), indicating bullish momentum. RSI at 56.0 suggests neutral-to-positive strength, while MACD at 11.8 confirms upward momentum. Valuation is slightly expensive (P/E 41.8 vs. industry 29.1), but strong technicals make it a good candidate for swing trading.
💡 Optimal Entry Price: Around 1,860 ₹ – 1,880 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 1,930 ₹ – 1,950 ₹ (close to 52-week high resistance) or place a stop-loss below 1,840 ₹.
✅ Positive
- Strong ROCE (25.9%) and ROE (20.2%) highlight efficient capital use.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- Dividend yield of 0.82% adds investor confidence.
- Stock trading above both 50 DMA and 200 DMA shows bullish trend.
- EPS of 46.5 ₹ provides solid earnings visibility.
⚠️ Limitation
- High P/E ratio (41.8) compared to industry average (29.1) indicates overvaluation.
- Quarterly PAT declined from 200 Cr. to 179 Cr., showing short-term weakness.
- PEG ratio of 1.75 suggests moderate valuation pressure relative to growth.
📉 Company Negative News
- Decline in FII holding (-0.76%) and DII holding (-0.12%) shows reduced institutional confidence.
- Recent profit decline may weigh on sentiment in the near term.
📈 Company Positive News
- Quarterly profit variation of 14.6% highlights overall earnings resilience.
- Strong trading volume (3.25 lakh vs. 1.97 lakh average) indicates rising investor interest.
- Stock trading near 52-week high (92.5% of range), reflecting strong momentum.
🏭 Industry
- Industry PE at 29.1 vs. JBCHEPHARM PE at 41.8 suggests slight overvaluation compared to peers.
- Pharmaceutical sector remains resilient with steady demand and defensive characteristics.
🔎 Conclusion
JB Chemicals & Pharmaceuticals is fundamentally strong with bullish technicals, though valuations are stretched. Swing traders may enter near 1,860 ₹ – 1,880 ₹ with a target around 1,930 ₹ – 1,950 ₹. Stop-loss below 1,840 ₹ is recommended. The stock offers good swing trade potential with a rating of 4.1.