J. B. Chemicals & Pharmaceuticals clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.
Health DiagnosticsCardiovascularPain ManagementRespiratoryAlternative MedicineOncologyDiabetesNephrologyGastroenterologyPharmaceutical
Description
J. B. Chemicals & Pharmaceuticals Limited manufactures and markets pharmaceutical formulations, herbal remedies, and active pharmaceutical ingredients (API) in India and internationally.
Business Segments
The company operates through the Prescripti…
Analysis
Beloved champion
J. B. Chemicals & Pharmaceuticals Limited sits in the top corner of our grid: excellent business, premium price; every investor already knows the story. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 41.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 16% a year, against analyst forecasts of 18%. The price, in other words, assumes less than the experts do.
Growth is solid; the safety picture is sturdy. The company scores 13/20 on our value-creation score: creating some value. Analyst sentiment is cautious.
Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202391
84
2023202420252026
All-time high
91
Jan 2023
All-time low
44
Jan 2024
Average rank
65
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
24
31
27
41
Price/Earnings
20
33
30
49
Price/Book
5
24
28
50
Dividend Yield
83
28
45
39
Value (overall)
33
25
23
43
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.