Jubilant Ingrev. (JUBLINGREA)

FairStock Score: 62/100 — STEADY

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

Key Financials

Strengths

• Promoter holding of 45.22% provides good alignment with minority shareholders.
• Conservative balance sheet with debt/equity of only 0.26.
• Positive free cash flow of ₹119 Cr supports financial flexibility.
• Piotroski F-Score of 6/9 indicates decent financial health.
• Altman Z-Score of 2.90 suggests no immediate bankruptcy risk.

Concerns

• Extremely expensive: P/E of 33.92, P/B of 4.00, and EV/EBITDA of 105.73 leave no margin of safety.
• Anaemic sales growth of 1.43%; latest quarter net margin is only about 4.5% on ₹1,051 Cr sales.
• ROE of 9.07% is modest for a business trading at a P/B of 4.00.
• Profit growth of 28.66% looks unsustainable when underlying sales growth is nearly flat, and DCF/Graham values are far below the current price.

AI Analysis

Jubilant Ingrev operates in specialty chemicals, a field I respect if the business possesses pricing power and a durable niche. Looking at the numbers, I see a financially stable company but hardly an inexpensive one. Sales growth is just 1.43%, and the latest quarter's net profit of ₹47 Cr on sales of ₹1,051 Cr translates to a thin margin. The reported profit growth of 28.66% catches the eye, but with sales barely moving, I have to ask whether this is sustainable or simply a margin blip. ROE of 9.07% and ROCE of 11.15% are moderate; my benchmark for a wonderful business is much higher. The moat is not obvious from these figures. Specialty chemicals can be competitive, and pricing power seems limited when sales growth is so tepid. On the positive side, debt/equity is only 0.26, free cash flow is positive at ₹119 Cr, and promoters own 45.22%, aligning interests. The Piotroski score of 6/9 also suggests acceptable financial health. But valuation is the deal-breaker. At ₹735.50, the P/E is 33.92, P/B is 4.00, and EV/EBITDA is a staggering 105.73. Graham's number, a conservative anchor, is ₹262.46, giving a negative margin of safety of over 123%. The DCF figure of ₹22.26 is even more extreme, and while I treat any single DCF with humility, it confirms I am paying an enormous price for modest growth. In Graham's words, price is what you pay, value is what you get. Here I get a steady but ordinary business with no margin of safety. I would keep it on the watchlist, not in the portfolio. A better price, or several years of proven earning power at higher returns, would change my view.

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