Jubilant Ingrevia Limited

Basic Materials — Specialty Chemicals · NSE

₹639.00+₹6.30 (+1.00%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jubilant Ingrevia Limited engages in life science products and solutions in India, the United States, Europe, China and internationally. It operates in three segments, Specialty Chemicals, Nutrition & Health Solutions, and Chemical Intermediates.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees2,185

Annual revenue₹4,345 Cr

How does it make money?

Turns over ₹4,345 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 2,185 employees supports ₹1.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. 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?Little sign of one

Returns on capital of 10.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 10.0% and earnings to grow about 16.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.0%

Est. earnings growth+16.4%

Analysts7

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 -8% while net margin moved -1% 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-8%

Margin effect-1%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.9% a year
✗ Profit has declined at 3.3% a year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

32.9x

3Y Median

40.4x

40 monthly readings · mean 42.5x · range 21.7x–71.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 40.4x. 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 trades 19% below the peer median of 40.4x.

vs. its own history

Fair

40.4x median over 40 months · -19%

vs. sector peers

Fair

40.4x median of 4 peers · -19%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.6x

PEG

0.81

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 12.3% to 14.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 14.8% to 10.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 95% over 3 years, from ₹407 Cr to ₹792 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 53% against revenue up -8% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.3% to 14.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹225 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 53% against revenue up -8%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 12%✓ 14.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹225 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 40.4x✓ 32.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

5 good · 6 neutral · 0 weak

Market Cap

₹10,078 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.44

Profitable

Profitable on a per-share basis

ROE

8.9%

Moderate

Moderate capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

25.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

40.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.78%

Modest

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

Free Cash Flow

₹225 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

21.3x

Improving

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

Operating Margin

11.4%

Average

Average margins

Net Margin

6.6%

Average

Average bottom-line conversion

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

635.8 / 673.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,740 Cr	₹4,100 Cr	₹4,124 Cr	₹4,345 Cr	-2.9%
EBITDA	₹581 Cr	₹462 Cr	₹556 Cr	₹608 Cr	+1.5%
EBITDA Margin	12.3%	11.3%	13.5%	14.0%	—
PAT (Net Profit)	₹307 Cr	₹183 Cr	₹251 Cr	₹278 Cr	-3.3%
EPS	₹19.33	₹11.55	₹15.84	₹17.51	-3.2%
ROE	11.5%	6.7%	8.6%	8.9%	—
ROCE	14.8%	9.3%	11.0%	10.7%	—
Total Debt	₹407 Cr	₹740 Cr	₹764 Cr	₹792 Cr	+24.9%
Free Cash Flow	-₹19 Cr	-₹138 Cr	₹142 Cr	₹225 Cr	—

🔴 Revenue has shrunk at 2.9% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.5% a year).

🟢 EBITDA Margin has risen from 12.3% to 14.0% over 3 years (+1.7 pts).

🔴 PAT (Net Profit) has shrunk at 3.3% a year over 3 years.

🔴 EPS has shrunk at 3.2% a year over 3 years.

🔴 ROE has fallen from 11.5% to 8.9% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 14.8% to 10.7% over 3 years (-4.1 pts).

🔴 Total Debt has grown at 24.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹19 Cr to ₹225 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,484 Cr

Total Liabilities

₹2,358 Cr

Cash & Equivalents

₹188 Cr

Operating Cash Flow

₹524 Cr

Capex

-₹299 Cr

Shareholding (proxy)

Institutional Holding

28.2%

Insider Holding

50.9%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹969.17

+51.7% vs CMP

Target Range

₹673 – ₹1,200

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive4 mixed1 general

Jubilant Ingrevia Q1FY27 profit surges 41%, EBITDA guidance held

scanx.trade, 18 OctResults

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

Jubilant Ingrevia (NSEI:JUBLINGREA) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

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

Jubilant Ingrevia Shares Gain 3% As Kotak Securities Sees Sharp Earnings Growth Ahead; Retains 'Buy'

NDTV Profit, 23 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.

Jubilant Ingrevia: What is behind its flat revenue?

Value Research, 06 Aug

Jubilant Ingrevia Q1 Net Profit Climbs 41 PC to Rs 105.82 Cr

HDFC Sky, 22 JulResults

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

Jubilant Ingrevia Share Price gains as chemicals stock moves

Univest, 30 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.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑