Jubilant Agri (JUBLCPL)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• High ROCE of 33.22% with debt/equity of only 0.10 reflects efficient capital use and a conservative balance sheet.
• Promoter holding of 74.37% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 indicates solid financial health and operational quality.
• Consistent growth with sales up 13.45% and profit up 13.73%.
• Low leverage provides resilience in a downtrend or economic slowdown.

Concerns

• P/E of 22.05 and P/B of 6.42 leave little margin of safety; price is far above book value of ₹275.31.
• PEG of 1.62 suggests the market is fully pricing the current growth rate.
• Zero dividend yield means total returns depend entirely on capital gains.
• Latest quarter’s net profit of ₹22 Cr on sales of ₹451 Cr implies a modest net margin, and the stock is 41% below its 52-week high.

AI Analysis

Jubilant Agri earns a high 33.22% return on capital employed and carries only 0.10 debt-to-equity. That is a combination I admire: the business is generating strong returns without leaning on borrowed money. Promoters own 74.37%, so the people running it have real skin in the game. The Piotroski F-score of 7 out of 9 also points to solid financial health. Growth is steady, not spectacular: sales are up 13.45% and profit is up 13.73%. For a specialty chemicals company, that is respectable. But I must be honest with myself and with the owner of this business: valuation matters. At ₹1,767.50, the stock trades at 22.05 times earnings and 6.42 times book value. Book value is only ₹275.31 per share. The PEG ratio of 1.62 tells me the market is not giving me a discount for the growth. There is no dividend yield, so the only returns must come from the business and the share price. The latest quarter shows ₹451 Cr of sales and ₹22 Cr of net profit; the company is profitable, but the earnings power is not exceptional at the current asking price. The stock has fallen from its 52-week high of ₹3,013.40, but a falling price alone is not a margin of safety. The FairStock Score of 47/100 feels right: mixed. I would need a significantly lower price, or evidence that growth is accelerating, before this becomes a compelling buy. It is a good business, not a good price.

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