Jenburkt Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹920.20+₹4.05 (+0.44%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jenburkt Pharmaceuticals Limited manufactures and markets pharmaceutical formulations in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees801

Annual revenue₹168 Cr

How does it make money?

Turns over ₹168 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 801 employees supports ₹21.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.0 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.

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 23.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.6% 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.

Peer median ROE14.5%

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 +24% while net margin moved +14% 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+24%

Margin effect+14%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.3% — barely ahead of inflation
• Profit CAGR of 12.2%
✗ Latest-year revenue growth of 0.0% is below the longer-term trend — momentum is fading
✗ Profit fell 24.5% in the latest year

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

80/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.4x

Sector Median

33.3x

median of 4 sector peers

🟢Against its sector it trades 63% below the peer median of 33.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.3x median of 4 peers · -63%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.8x

PEG

1.02

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 25.9% to 30.6% over 3 years.
Debt is being paid down
Total debt is down 15% over 3 years.
High return on capital employed
ROCE of 23.1% 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

Return on capital is falling
ROCE has declined from 26.3% to 23.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 64% against revenue up 24% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.1% 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 25.9% to 30.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 15% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 63% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 7.3% 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.
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 29%✓ 30.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 7.3% CAGR
Latest reported year was 0.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹406 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.4x

Cheap

Cheap against the generic band

P/B Ratio

2.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹74.39

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

23.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.0%

Modest

Modest growth

Profit Growth (YoY)

-24.5%

Falling

Profits are shrinking

Dividend Yield

2.25%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.2%

Good

Healthy core-business profitability

Net Margin

19.5%

Good

Strong bottom-line conversion

Current Ratio

4.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹136 Cr	₹142 Cr	₹151 Cr	₹168 Cr	+7.3%
EBITDA	₹35 Cr	₹38 Cr	₹46 Cr	₹52 Cr	+13.5%
EBITDA Margin	25.9%	26.5%	30.5%	30.6%	—
PAT (Net Profit)	₹25 Cr	₹26 Cr	₹32 Cr	₹35 Cr	+12.2%
EPS	₹53.9	₹58.86	₹72.65	₹78.71	+13.5%
ROE	20.1%	17.9%	18.7%	17.6%	—
ROCE	26.3%	23.8%	25.0%	23.1%	—
Total Debt	₹3 Cr	—	₹4 Cr	₹2 Cr	-5.3%
Free Cash Flow	₹15 Cr	₹6 Cr	₹8 Cr	₹13 Cr	-5.0%

🟢 Revenue has grown at 7.3% a year over 3 years.

🟢 EBITDA has grown at 13.5% a year over 3 years.

🟢 EBITDA Margin has risen from 25.9% to 30.6% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 12.2% a year over 3 years.

🟢 EPS has grown at 13.5% a year over 3 years.

🔴 ROE has fallen from 20.1% to 17.6% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 26.3% to 23.1% over 3 years (-3.2 pts).

🟢 Total Debt has shrunk at 5.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 5.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹226 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹27 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.2%

Corporate Actions

Dividend Rate

₹20.7

Ex-Dividend Date

28 Aug 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

1 mixed1 negative4 general

JENBURPH Forecast — Price Target — Prediction for 2027

TradingView, 17 OctAnalyst view

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

Jenburkt Pharmaceuticals Share Price: Price, Valuation View

Univest, 06 Oct

Counter Cyclical raises Jenburkt Pharma stake to 5.01% via open market

scanx.trade, 12 Oct

Jenburkt Pharmaceuticals Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Jenburkt Pharmaceuticals standalone net profit declines 24.39% in the June 2026 quarter

Business Standard, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Jenburkt Pharmaceuticals Ltd. 52 Week Low Streak: Consecutive Low Analysis

Univest, 07 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑