Blue Jet Healthcare Limited

Healthcare — Biotechnology · NSE

₹521.00+₹1.55 (+0.30%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Blue Jet Healthcare Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Blue Jet Healthcare Limited engages in the manufacturing and sale of artificial sweeteners, pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for use in products.

IndustryBiotechnology

SectorHealthcare

Employees581

Annual revenue₹944 Cr

How does it make money?

Turns over ₹944 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 581 employees supports ₹1.63 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.63 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.2% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 13.0% and earnings to grow about 15.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.0%

Est. earnings growth+15.3%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +31% while net margin moved +18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+31%

Margin effect+18%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 38.5x already prices in growth
• P/E is close to its own historical median of 39.9x
✗ P/B of 6.65x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

38.5x

3Y Median

39.9x

37 monthly readings · mean 47.4x · range 18.6x–95.8x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 39.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 132% above the peer median of 16.5x.

vs. its own history

Fair

39.9x median over 37 months · -4%

vs. sector peers

Expensive

16.5x median of 4 peers · +132%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.3x

PEG

2.45

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 32.7% to 36.3% over 3 years.
Cash generation is improving
Free cash flow is up 39% over 3 years.
High return on capital employed
ROCE of 24.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.5% to 18.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.7% to 24.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 1126% over 3 years, from ₹3 Cr to ₹42 Cr.
🔴High leverageFinancial
Debt/Equity of 3.10x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 32.7% to 36.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.10x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 132% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 23.5% to 18.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 34%✓ 36.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.4% CAGR
Latest reported year was -17.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹115 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹9,038 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.5x

Fair

Fairly valued against the generic band

P/B Ratio

6.65x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.55

Profitable

Profitable on a per-share basis

ROE

18.2%

Strong

Strong capital efficiency

ROCE

24.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.10x

High

High leverage

Revenue Growth (YoY)

-17.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-14.3%

Falling

Profits are shrinking

Dividend Yield

0.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹115 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

31.2%

Good

Healthy core-business profitability

Net Margin

26.5%

Good

Strong bottom-line conversion

Current Ratio

4.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

545.1 / 567.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

24.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹721 Cr	₹710 Cr	₹1,026 Cr	₹944 Cr	+9.4%
EBITDA	₹236 Cr	₹245 Cr	₹405 Cr	₹343 Cr	+13.3%
EBITDA Margin	32.7%	34.5%	39.5%	36.3%	—
PAT (Net Profit)	₹160 Cr	₹164 Cr	₹305 Cr	₹248 Cr	+15.7%
EPS	₹9.23	₹9.44	₹17.59	₹14.29	+15.7%
ROE	23.5%	19.4%	26.9%	18.2%	—
ROCE	31.7%	25.8%	35.0%	24.0%	—
Total Debt	₹3 Cr	₹2 Cr	₹20 Cr	₹42 Cr	+130.6%
Free Cash Flow	₹82 Cr	₹67 Cr	-₹34 Cr	₹115 Cr	+11.7%

🟢 Revenue has grown at 9.4% a year over 3 years.

🟢 EBITDA has grown at 13.3% a year over 3 years.

🟢 EBITDA Margin has risen from 32.7% to 36.3% over 3 years (+3.6 pts).

🟢 PAT (Net Profit) has grown at 15.7% a year over 3 years.

🟢 EPS has grown at 15.7% a year over 3 years.

🔴 ROE has fallen from 23.5% to 18.2% over 3 years (-5.3 pts).

🔴 ROCE has fallen from 31.7% to 24.0% over 3 years (-7.7 pts).

🔴 Total Debt has grown at 130.6% a year over 3 years.

🟢 Free Cash Flow has grown at 11.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,641 Cr

Total Liabilities

₹281 Cr

Cash & Equivalents

₹61 Cr

Operating Cash Flow

₹334 Cr

Capex

-₹219 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

76.0%

Corporate Actions

Dividend Rate

₹1.2

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 2 Sell

Target Price (Mean)

₹568

+9.0% vs CMP

Target Range

₹370 – ₹720

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

5 mixed1 general

Blue Jet Healthcare approves fund raising via equity

scanx.trade, 18 OctFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Blue Jet Healthcare (NSEI:BLUEJET) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Blue Jet Healthcare Q3FY26 Earnings Call: Vizag Project Launch and Supply Chain Updates

scanx.trade, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

BLUEJET Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Blue Jet Healthcare; target of Rs 720: Motilal Oswal

Moneycontrol.com, 18 Aug

Blue Jet Healthcare Share Price: Good Buy After Q1 FY27 Results?

Univest, 09 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-17.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑