pharma

J B Chemicals

JBCHEPHARM · Nifty 50

2,195.6

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionpharma sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score85/100 (STRONG). 1 positive flags, 3 concerns.
Historical Context23 similar technical setups. Average outcome: -7.4% decline. 0% positive.

Fundamental

85/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

J B Chemicals scores 85/100 on fundamentals (strong). J B Chemicals: BROAD EXPANSION regime.

Fundamental Score: 85/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 17.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE17.1%=
17.1%Net Margin
×
0.8xTurnover
×
1.2xLeverage

ROE of 17.05% is moderate efficiency-driven and stable. Net margin of 17.1% × asset turnover of 0.83x × leverage of 1.2x.

What This Means

Net margin of 17.1% means the company keeps ₹17.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.83x means the company efficiently uses its assets to generate revenue. Leverage of 1.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

68.8%

Operating

23.1%

Net

17.1%

declining

Gross margin 68.8% → operating margin 23.1% → net margin 17.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 1.0x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 172.0x — very comfortable. Debt service is not a concern.

Free Cash Flow

MODERATE

FCF margin at 15.0% — strong cash generation. Business is self-funding.

Peer Comparison

J B Chemicals is compared against 10 peers in the pharma sector.

Key Watchpoints

🟢

Breaks above ₹2305 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹2086 (-5%)

Further downside risk

🟢

Pharma sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

Risk Flags

🔴 1 Critical⚠️ 2 Warning1 Positive4 total flags
🔴Cash covers only 19% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Working capital changes are 33% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Price/Sales: 8.5x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
50.8UNAVAILABLE
P/B Ratio
8.7HIGH
Market Cap
₹3624933.8L CrHIGH
From 52W High
95% of high
Sector Peers
10
J B Chemicals Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight