JFL Life Sciences Limited

Sector n/a · NSE

₹51.05₹0.00 (0.00%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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

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

How does it make money?

Turns over ₹131 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation.

EBITDA margin8.9%

Net margin4.9%

What is its competitive advantage?Some evidence

ROCE of 19.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.8%

ROE14.0%

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 +207% while net margin moved -26% 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+207%

Margin effect-26%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

16.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 8.7% to 14.0%.
Return on capital is rising
ROCE has improved from 15.1% to 19.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 12.8% to 8.9% over 3 years.
Debt is rising
Total debt is up 203% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 203% over 3 years, from ₹7 Cr to ₹22 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 12.8% to 8.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.
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

1Revenue growth stays above 34% a year✓ 45.3% CAGR
Latest reported year was 60.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹168 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

14.0%

Moderate

Moderate capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.47x

Low

Conservative leverage

Revenue Growth (YoY)

60.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

54.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹51.05

Gross Margin

12.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

10.3 / 10.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹43 Cr	₹47 Cr	₹82 Cr	₹131 Cr	+45.3%
EBITDA	₹5 Cr	₹5 Cr	₹8 Cr	₹12 Cr	+28.7%
EBITDA Margin	12.8%	10.7%	9.9%	8.9%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹4 Cr	₹6 Cr	+31.6%
EPS	₹0.92	₹0.95	₹1.2	—	—
ROE	8.7%	9.3%	10.5%	14.0%	—
ROCE	15.1%	12.6%	17.7%	19.8%	—
Total Debt	₹7 Cr	₹6 Cr	₹11 Cr	₹22 Cr	+44.7%
Free Cash Flow	-₹9 Cr	₹2 Cr	-₹4 Cr	-₹8 Cr	—

🟢 Revenue has grown at 45.3% a year over 3 years.

🟢 EBITDA has grown at 28.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.8% to 8.9% over 3 years (-3.9 pts).

🟢 PAT (Net Profit) has grown at 31.6% a year over 3 years.

🟢 ROE has risen from 8.7% to 14.0% over 3 years (+5.2 pts).

🟢 ROCE has risen from 15.1% to 19.8% over 3 years (+4.7 pts).

🔴 Total Debt has grown at 44.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹106 Cr

Total Liabilities

₹60 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹3 Cr

Recent News

2 mixed4 general

JFL Life Sciences Schedules 16th AGM on August 25, 2026; Reports Strong FY2025-26 Financial Performance

scanx.trade, 25 Aug

JFL Life Sciences confirms no encumbrance by promoters in FY26

scanx.trade, 01 Jun

JFL Life Sciences (NSEI:JFLLIFE) - Stock Analysis

Simply Wall Street, 08 Sept

JFL Life Sciences Limited SME IPO – NSE Emerge opens on 25th August 2022; Intends to raise Rs 1,816.58 Lakhs through 29,78,000 equity shares

ThePrint, 25 AugFunding

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

JFL Life Sciences IPO GMP, Price, Review, Allotment & Analysis

IPO Watch, 10 Sept

JFL Life Sciences Limited SME IPO – NSE Emerge opens on 25th August 2022; Intends to raise Rs 1,816.58 Lakhs through 29,78,000 equity shares

Ahmedabad Mirror, 27 AugFunding

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong13/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate8.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 34% a year45.3% CAGR
✓EBITDA margin holds above 7%8.9%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x1.9x
✓ROCE stays above 17%19.8%