Check Before You Invest : JB Chemicals & Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does JB Chemicals & Pharmaceuticals Ltd belong to?

JB Chemicals & Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is JB Chemicals & Pharmaceuticals Ltd a good quality company?

JB Chemicals & Pharmaceuticals Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is JB Chemicals & Pharmaceuticals Ltd undervalued or overvalued?

JB Chemicals & Pharmaceuticals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is JB Chemicals & Pharmaceuticals Ltd a good buy now?

JB Chemicals & Pharmaceuticals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd revenue growth is 12.9% for FY-2025, which is below its 5-year CAGR of 17.81%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Return on capital employed is 26.83% for FY-2025, which is above its 5-year historical median of 25.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Return on Asset is 13.69%, which is in line with its 5-year historical median of 13.04%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Return on equity is 21.91% for FY-2025, which is in line with its 5-year historical median of 21.45%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Cash conversion cycle is 61 days, below its 5-year historical median of 73 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.81	0.81
ROE	21.91	21.45
ROCE	26.83	25.13
Cash Conversion Cycle	61 days	73 days

Q.6 Gross Profit margin of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 27% for FY-2025, which is above its 5-year median of 25.6%, indicating increasing margins.

Q.7 Operating Profit Margin of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.27% for FY-2025, which is in line with its 5-year median of 26.6% indicating stable margins.

Q.8 Net Profit Margin of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Net Profit Margin is 17.53% for FY-2025, is above with its 5-year median of 16.49%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	27	25.6
Operating Profit Margin	27.27	26.6
Net Profit Margin	17.53	16.49

Q.9 Debt to Equity ratio of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of JB Chemicals & Pharmaceuticals Ltd?

JB Chemicals & Pharmaceuticals Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JB Chemicals & Pharmaceuticals Ltd?

Promoters hold 48.80% of the JB Chemicals & Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JB Chemicals & Pharmaceuticals Ltd vs industry peers?

JB Chemicals & Pharmaceuticals Ltd revenue CAGR is 17.81%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	12.9	8.3
Gross Profit Growth	19.5	14.7
Operating Profit Growth	15.7	11.4
Net Profit Growth	20.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.81	0.81
ROE	21.91	9.49
ROCE	26.83	11.91
Cash Conversion Cycle (days)	60.81	85

Valuation & price assessment

Q.1 Stock return of JB Chemicals & Pharmaceuticals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 33.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	33.2%	24%	28%	41.8%

Q.3 Valuation ratios of JB Chemicals & Pharmaceuticals Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	46.27	41.94	31.09
Price to Book	8.62	7.58	2.85
Price to Sales	8.51	6.95	2.79
EV to EBITDA	29.22	25.96	15.87

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