J.G. Chemicals Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹635.00+₹5.55 (+0.88%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

J.G. Chemicals Limited engages in the manufacture and sale of zinc oxide and zinc sulphate in India and internationally. The company sells its products under the Luxmi brand name.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees108

Annual revenue₹965 Cr

How does it make money?

Turns over ₹965 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 108 employees supports ₹8.93 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.6%

Net margin6.8%

Revenue / employee₹8.93 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

What is its competitive advantage?Some evidence

ROCE of 17.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.0%

ROE12.5%

Peer median ROE12.0%

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 +23% while net margin moved -2% 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+23%

Margin effect-2%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.1% — barely ahead of inflation
✗ Profit CAGR of only 6.2%

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

39/ 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.

Historical Valuation

Current P/E

33.1x

3Y Median

30.8x

33 monthly readings · mean 30.4x · range 12.3x–52.1x

Sector Median

12.3x

median of 3 sector peers

🟡Currently trading close to its 3y median of 30.8x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 169% above the peer median of 12.3x.

vs. its own history

Fair

30.8x median over 33 months · +7%

vs. sector peers

Expensive

12.3x median of 3 peers · +169%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

33.1x

P/B

4.75x

EV/EBITDA

26.8x

PEG

5.31

Dividend Yield

0.17%

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 91% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 26.5% to 12.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.7% to 17.0% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 48% against revenue growth of 23% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 48% against revenue up 23% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 91% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Sales are being booked faster than collected
Receivables are up 48% against revenue up 23%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 169% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.1% 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.
Returns on shareholder capital are falling
ROE has dropped from 26.5% to 12.5%. 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
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 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 7.1% CAGR
Latest reported year was 44.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹5 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 14%✓ 17.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 6 neutral · 0 weak

Market Cap

₹2,488 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.18

Profitable

Profitable on a per-share basis

ROE

12.5%

Moderate

Moderate capital efficiency

ROCE

17.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.19x

Moderate

Moderate leverage

Revenue Growth (YoY)

44.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

58.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.17%

Modest

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

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹635

Operating Margin

10.2%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

18.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.72

Defensive

Steadier than the market

52W Range Position

85%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

632.2 / 615.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹785 Cr	₹668 Cr	₹848 Cr	₹965 Cr	+7.1%
EBITDA	₹81 Cr	₹50 Cr	₹97 Cr	₹92 Cr	+4.7%
EBITDA Margin	10.3%	7.6%	11.4%	9.6%	—
PAT (Net Profit)	₹55 Cr	₹31 Cr	₹64 Cr	₹66 Cr	+6.2%
EPS	₹14.02	₹9.6	₹16.34	₹16.81	+6.2%
ROE	26.5%	7.7%	13.8%	12.5%	—
ROCE	36.7%	11.3%	19.0%	17.0%	—
Total Debt	₹70 Cr	₹14 Cr	₹0 Cr	₹6 Cr	-54.9%
Free Cash Flow	₹21 Cr	₹67 Cr	-₹16 Cr	₹5 Cr	-40.2%

🟢 Revenue has grown at 7.1% a year over 3 years.

🟢 EBITDA has grown at 4.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.6% over 3 years.

🟢 PAT (Net Profit) has grown at 6.2% a year over 3 years.

🟢 EPS has grown at 6.2% a year over 3 years.

🔴 ROE has fallen from 26.5% to 12.5% over 3 years (-14.0 pts).

🔴 ROCE has fallen from 36.7% to 17.0% over 3 years (-19.7 pts).

🟢 Total Debt has shrunk at 54.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 40.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹569 Cr

Total Liabilities

₹28 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

1.7%

Insider Holding

75.1%

Corporate Actions

Dividend Rate

₹1.1

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 positive1 mixed4 general

J.G.CHEMICALS LIMITED Share Price

Upstox, 16 Oct

JG Chemicals Q1FY27 profit hits record ₹261 crore; eyes Nov launch

scanx.trade, 08 Aug

44% Return In One Month: J.G. Chemicals Share Price Slumps Over 1%. Here's Why

NDTV Profit, 19 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

If EPS Growth Is Important To You, J.G. Chemicals (NSE:JGCHEM) Presents An Opportunity

Simply Wall Street, 11 Aug

JG Chemicals Q4 Profit Rises 19% to ₹182 Million as Revenue Surges 28% YoY

Sahi, 14 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

JG Chemicals Ltd. Share Price: Price Action and Valuation

Univest, 30 Sept

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong15.5/20

🔴GrowthWeak7.4/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.1/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 8%9.6%
✓Revenue growth stays above 5% a year7.1% CAGR
✓Free cash flow remains positive₹5 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 14%17.0%