Jubilant Pharmova Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹935.00−₹3.20 (−0.34%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

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 Pharmova Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jubilant Pharmova Limited operates as an integrated pharmaceutical company in India, the Americas, Europe, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees5,657

Annual revenue₹8,225 Cr

How does it make money?

Turns over ₹8,225 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 5,657 employees supports ₹1.45 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.45 Cr

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?Little sign of one

Returns on capital of 6.3% 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 ROE14.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 13.8% and earnings to grow about 79.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.8%

Est. earnings growth+79.9%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +32% while net margin moved -594% 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+32%

Margin effect-594%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

44/ 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

42.2x

2Y Median

37.4x

28 monthly readings · mean 108.0x · range 15.4x–254.0x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 2y median of 37.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 27% above the peer median of 33.3x.

vs. its own history

Fair

37.4x median over 28 months · +13%

vs. sector peers

Expensive

33.3x median of 4 peers · +27%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 13.1% to 16.0% over 3 years.
Return on equity is rising
ROE has improved from -1.1% to 5.6%.
Return on capital is rising
ROCE has improved from 2.1% to 6.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹222 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.1% to 16.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 27% above the peer median. That premium needs a reason that persists, or it closes.
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
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.

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

1EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹222 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.8% CAGR
Latest reported year was 17.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✗ 6.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹14,809 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.09x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.17

Profitable

Profitable on a per-share basis

ROE

5.6%

Weak

Weak capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

17.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-45.0%

Falling

Profits are shrinking

Dividend Yield

0.53%

Modest

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

Free Cash Flow

-₹222 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.5x

Improving

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

Operating Margin

5.4%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1001.7 / 956.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

14.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,219 Cr	₹6,645 Cr	₹7,192 Cr	₹8,225 Cr	+9.8%
EBITDA	₹815 Cr	₹978 Cr	₹1,212 Cr	₹1,312 Cr	+17.2%
EBITDA Margin	13.1%	14.7%	16.9%	16.0%	—
PAT (Net Profit)	-₹61 Cr	₹77 Cr	₹839 Cr	₹399 Cr	—
EPS	₹-3.83	₹4.86	₹52.85	₹25.08	—
ROE	-1.1%	1.4%	13.4%	5.6%	—
ROCE	2.1%	4.4%	11.3%	6.3%	—
Total Debt	₹3,677 Cr	₹3,664 Cr	₹2,731 Cr	₹3,615 Cr	-0.6%
Free Cash Flow	-₹154 Cr	₹74 Cr	-₹44 Cr	-₹222 Cr	—

🟢 Revenue has grown at 9.8% a year over 3 years.

🟢 EBITDA has grown at 17.2% a year over 3 years.

🟢 EBITDA Margin has risen from 13.1% to 16.0% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹61 Cr to ₹399 Cr.

🟢 EPS has turned positive, from ₹-3.83 to ₹25.08.

🟢 ROE has risen from -1.1% to 5.6% over 3 years (+6.7 pts).

🟢 ROCE has risen from 2.1% to 6.3% over 3 years (+4.2 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15,523 Cr

Total Liabilities

₹8,427 Cr

Cash & Equivalents

₹1,265 Cr

Operating Cash Flow

₹1,227 Cr

Capex

-₹1,449 Cr

Shareholding (proxy)

Institutional Holding

24.3%

Insider Holding

56.2%

Corporate Actions

Next Earnings

30 Oct 2026

Dividend Rate

₹5

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹1,088.5

+16.4% vs CMP

Target Range

₹850 – ₹1,327

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 mixed5 general

Quant MF Sells Jubilant Pharmova Stake for Over Rs 100 Crore; Stock Falls Over 2%

HDFC Sky, 13 Oct

Compare Jubilant Pharmova with

Equitymaster, 16 Oct

Abakkus buys additional Rs 101 crore worth of Jubilant Pharmova shares; Qualcomm exits Shadowfax

Moneycontrol.com, 12 Oct

Jubilant Pharmova block deal: Quant Mutual Fund offloads Rs 190 crore stake amid Rs 800 crore fundraising

The Economic Times, 12 Oct

Jubilant Pharmova board approves ₹800 crore NCD issuance via private placement

scanx.trade, 12 Oct

Jubilant Pharmova to Raise ₹800 Cr Via NCD Issue

HDFC Sky, 13 OctFunding

🟡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.
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

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

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.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑