Jubilant Pharmo (JUBLPHARMA)

FairStock Score: 53/100 — MIXED

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

Key Financials

Strengths

• Strong free cash flow of ₹1,584 Cr against a market cap of ₹13,800 Cr
• Piotroski F-score 7/9 indicates solid financial health
• Manageable leverage with debt/equity at 0.44
• Promoter holding of 47.67% aligns management with minority shareholders
• Recent quarterly sales growth of 12% shows some momentum

Concerns

• Profit growth down 31.01% with weak ROE of 6.92% and ROCE of 9.54%
• Excessive valuation: P/E 29.9, EV/EBITDA 105.69, price far above Graham Number and DCF value
• Five-year revenue CAGR of only 3.47% reflects limited long-term growth
• Altman Z-score of 2.11 puts the company in a grey zone with bankruptcy risk

AI Analysis

I approach Jubilant Pharmo with the same test I would apply to any business: what is the return on capital, how durable is the growth, and is there a margin of safety? The numbers give me pause. Five-year revenue CAGR is a meagre 3.47%, even though the latest quarter shows sales up 12%. Profit, however, fell 31%, and the returns are mediocre—ROE of 6.92% and ROCE of 9.54%. A business that earns little more than its cost of capital is not a compounding machine. The balance sheet is not alarming: debt-equity of 0.44 is manageable, free cash flow of ₹1,584 Cr is healthy, and the Piotroski F-score of 7 suggests the financial position is sound. Promoter holding of 47.67% also aligns interests. But that is where the praise ends. At ₹946.30, I am asked to pay a P/E of 29.9 and an EV/EBITDA of 105.7. Graham would mock such arithmetic. The Graham number is ₹489.84, and a conservative DCF says ₹168.47. That leaves no margin of safety—in fact, it suggests speculation. With Altman Z-score of 2.11, the business sits in a grey zone. This may be a decent company, but a good business is not a good investment at the wrong price. I would wait for a meaningful drop—near the Graham number or with visible profit revival—before putting money to work. Until then, the risk-reward is unfavorable.

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