J B Chemicals & (JBCHEPHARM)

FairStock Score: 42/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wearing Graham's scepticism and Buffett's quality lens. J B Chemicals shows a wonderful balance sheet: Debt/Equity 0.00, ROCE 25.79%, ROE 18.69%, Piotroski F-Score 8/9 and Altman Z-Score 7.29. That tells me the business has earned high returns without leverage, and free cash flow of ₹606 Cr is real comfort. The five-year revenue CAGR of 17.16% suggests it has compounded well historically. But the recent picture is weak: sales growth -4.80%, profit growth -31.00%, and latest quarter sales ₹1,065 Cr with net profit ₹198 Cr. A moat may exist in brands or doctor relationships, but the numbers alone show a quality pharma franchise hitting a soft patch. Valuation is my main quarrel. At ₹2,416.10, market cap ₹38,793 Cr, P/E 54.22, P/B 9.33, PEG 3.26 and EV/EBITDA 17.39, I am paying a rich price for uncertain growth. Graham Number is ₹483.51, leaving a margin of safety of -324.71%; DCF intrinsic value of ₹1,615.91 is well below the market price. Dividend yield is only 0.77%, so there is little income support. This is not a bargain. The FairStock Score of 42/100 says mixed, and I agree. I would classify it as a Stalwart: high quality, low debt, but currently overvalued with execution risk. Watch whether sales and profit growth recover, whether FCF stays above ₹600 Cr, and whether the valuation corrects toward DCF.

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