Jagsonpal Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹218.10−₹1.00 (−0.46%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Jagsonpal Pharmaceuticals Limited engages in the manufacturing, selling, and trading of pharmaceutical products and active pharmaceutical ingredients in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,297

Annual revenue₹287 Cr

How does it make money?

Turns over ₹287 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 1,297 employees supports ₹22.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin24.3%

Net margin15.0%

Revenue / employee₹22.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

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

ROCE has stayed above 15% in every year available and stands at 20.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.6% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.2%

ROE15.6%

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved +33% 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+21%

Margin effect+33%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.27 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

50/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

32.5x

3Y Median

36.8x

40 monthly readings · mean 42.2x · range 20.5x–89.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 36.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Fair

36.8x median over 40 months · -12%

vs. sector peers

Fair

33.3x median of 4 peers · -2%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.5x

P/B

5.54x

EV/EBITDA

20.6x

PEG

1.88

Dividend Yield

1.15%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.6% to 24.3% over 3 years.
High return on capital employed
ROCE of 20.2% 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 Attention1

Debt is rising
Total debt is up 36% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.96x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 36% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.2% 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 16.6% to 24.3%. 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 2.96x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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.

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

1EBITDA margin holds above 22%✓ 24.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 8.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹47 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 17%✓ 20.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹1,441 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.5x

Fair

Fairly valued against the generic band

P/B Ratio

5.54x

Rich

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

EPS (TTM)

₹6.71

Profitable

Profitable on a per-share basis

ROE

15.6%

Strong

Strong capital efficiency

ROCE

20.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.96x

High

High leverage

Revenue Growth (YoY)

8.8%

Modest

Modest growth

Profit Growth (YoY)

25.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.15%

Modest

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

Free Cash Flow

₹47 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹218.1

Operating Margin

18.4%

Good

Healthy core-business profitability

Net Margin

15.5%

Good

Strong bottom-line conversion

Current Ratio

5.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.27

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

230.2 / 232.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

23.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹237 Cr	₹209 Cr	₹269 Cr	₹287 Cr	+6.7%
EBITDA	₹39 Cr	₹32 Cr	₹59 Cr	₹70 Cr	+21.2%
EBITDA Margin	16.6%	15.5%	22.0%	24.3%	—
PAT (Net Profit)	₹27 Cr	₹22 Cr	₹55 Cr	₹43 Cr	+17.3%
EPS	₹4.08	₹3.39	₹8.22	₹6.31	+15.6%
ROE	16.8%	12.0%	23.1%	15.6%	—
ROCE	21.0%	15.5%	28.0%	20.2%	—
Total Debt	₹6 Cr	₹9 Cr	₹9 Cr	₹8 Cr	+10.8%
Free Cash Flow	₹46 Cr	₹35 Cr	₹55 Cr	₹47 Cr	+0.2%

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 21.2% a year over 3 years.

🟢 EBITDA Margin has risen from 16.6% to 24.3% over 3 years (+7.8 pts).

🟢 PAT (Net Profit) has grown at 17.3% a year over 3 years.

🟢 EPS has grown at 15.6% a year over 3 years.

🔴 ROE has fallen from 16.8% to 15.6% over 3 years (-1.2 pts).

🟡 ROCE has held roughly flat at 20.2% over 3 years.

🔴 Total Debt has grown at 10.8% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.2% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹317 Cr

Total Liabilities

₹41 Cr

Total Debt

₹8 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹47 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

2.6%

Insider Holding

75.9%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive2 mixed2 general

Jagsonpal Pharma rallies 14% on acquisition update; time to book profit?

Business Standard, 30 JunM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Jagsonpal Pharmaceuticals Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Jagsonpal Pharmaceuticals Share Price Rises 9.87% Today

Univest, 24 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Jagsonpal Pharmaceuticals Limited (NSE:JAGSNPHARM) Passed Our Checks, And It's About To Pay A ₹4.00 Dividend

Simply Wall Street, 31 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Jagsonpal Pharmaceuticals to buy Group Pharmaceuticals' wellness portfolio for ₹47 crore

CNBC TV18, 23 Sept

Jagsonpal Pharmaceuticals sets record date for ₹4 dividend per share

scanx.trade, 29 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

🟢Business QualityStrong16.7/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong13.1/20

🟢ProfitabilityStrong11.9/15

🔴ValuationDemanding6.5/15

🔴RiskHigh3.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 22%24.3%
✓Revenue growth stays above 5% a year6.7% CAGR
✓Free cash flow remains positive₹47 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 17%20.2%