MoneyWorks4Me

Check Before You Invest : Blue Jet Healthcare Ltd

BSE: 544009 NSE: BLUEJET ISIN: INE0KBH01020
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Blue Jet Healthcare Ltd belong to?
Blue Jet Healthcare Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Blue Jet Healthcare Ltd a good quality company?
Blue Jet Healthcare Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Blue Jet Healthcare Ltd undervalued or overvalued?
Blue Jet Healthcare Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 45.86 37.08
Price to Book 4.81 5.09
Price to Sales 12.16 8.73
EV to EBITDA 30.63 24.29
Q.4 Is Blue Jet Healthcare Ltd a good buy now?
Blue Jet Healthcare 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd revenue growth is -8% for FY-2026, which is below its 5-year CAGR of 13.68%, indicating slower growth.

Q.2 Gross Profit margin of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Gross profit margin which is the profit after deduction of direct costs, is 37.6% for FY-2026, which is in line with its 5-year median of 37.6%, indicating stable margins.

Q.3 Operating Profit Margin of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.05% for FY-2026, which is in line with its 5-year median of 32.41% indicating stable margins.

Q.4 Net Profit Margin of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Net Profit Margin is 26.16% for FY-2026, is in line with its 5-year median of 26.16%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 37.6 37.6
Operating Profit Margin (%) 31.05 32.41
Net Profit Margin (%) 26.16 26.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Return on Asset is 13.58%, which is below its 5-year historical median of 17.74%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Return on capital employed is 27.18% for FY-2026, which is below its 5-year historical median of 36.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Return on equity is 19.88% for FY-2026, which is below its 5-year historical median of 26.6%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Cash conversion cycle is 172 days, above its 5-year historical median of 138 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.52 0.72
ROE (%) 19.88 26.6
ROCE (%) 27.18 36.24
Cash Conversion Cycle 172 days 138 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Blue Jet Healthcare Ltd?
Blue Jet Healthcare Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Blue Jet Healthcare Ltd?

Q.1 Promoter shareholding and pledge status of Blue Jet Healthcare Ltd?
Promoters hold 79.81% of the Blue Jet Healthcare Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Blue Jet Healthcare Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Blue Jet Healthcare Ltd vs industry peers?
Blue Jet Healthcare Ltd revenue CAGR is 13.68%, compared to the industry median CAGR of 5.76%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -8 5.8
Gross Profit Growth (%) -15.8 12.5
Operating Profit Growth (%) -22.2 10.8
Net Profit Growth (%) -18.7 12.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 0.77
ROE (%) 19.88 8.73
ROCE (%) 27.18 11.11
Cash Conversion Cycle (days) 172.47 81

Valuation & price assessment

Q.1 Stock return of Blue Jet Healthcare Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -24.05% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -24.1%
Q.2 Valuation ratios of Blue Jet Healthcare Ltd vs historical?
The current P/E ratio of 45.86 is higher than its historical median of 37.08, indicating that the stock is trading above its historical average valuation.
Q.3 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 45.86 37.08 31.09
Price to Book 4.81 5.09 2.85
Price to Sales 12.16 8.73 2.82
EV to EBITDA 30.63 24.29 15.99

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