Jagsonpal Pharma (JAGSNPHARM)

FairStock Score: 31/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Near-zero debt (D/E 0.03) provides strong financial stability.
• High capital efficiency with ROE 20.75% and ROCE 22.95%.
• Promoter holding of 67.39% aligns management interest with minority shareholders.
• Latest quarter shows ₹11 Cr net profit on ₹73 Cr sales, implying a healthy net margin, plus a 1.48% dividend yield.

Concerns

• Revenue and profit are declining: sales growth -1.46% and profit growth -8.43%.
• Valuation is rich at P/E 26.48 and P/B 6.92 despite negative growth.
• Piotroski F-Score of 3/9 indicates weak fundamental health.
• FairStock Score of 11/100 flags high risk, and book value of ₹29.20 offers little asset backing at ₹202.02.

AI Analysis

Let me apply the same yardstick I used for any business: can I understand it, does it earn good returns on capital, and is the price sensible? Jagsonpal Pharma has some pleasing traits. It is almost debt-free, with debt/equity of 0.03, and it earns a return on equity of 20.75% and ROCE of 22.95%. Those are impressive numbers. Promoters own 67.39%, so their interests are aligned with mine. The latest quarter shows ₹11 Cr net profit on ₹73 Cr sales, a net margin above 15%, and the company pays a 1.48% dividend. But Graham taught me that a good business at a bad price is still a bad investment. Here sales fell 1.46% and profit fell 8.43%. At ₹202.02, I am paying 26.48 times earnings and 6.92 times book value for a company whose earnings are moving backward. The Piotroski F-Score of 3/9 is a red flag; it suggests deteriorating financial health beneath the surface. The FairStock Score of 11/100 also warns me that the margin of safety is missing. With book value of only ₹29.20, almost the entire price rests on hopes for future growth, yet the latest trend does not support that hope. The 52-week range of ₹155 to ₹264.50 tells me this stock has been volatile, and the current price is in the lower half, but a falling share price is not automatically cheap. If this were a consistent grower, I might be patient. But with negative growth and a rich multiple, I would need exceptional evidence before investing. The low debt and high return on capital are good, but they do not make up for declining profits at this valuation. I would keep this on my watchlist, not in my portfolio.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer