J.B. Chemicals & Pharmaceuticals Ltd.
NSE: JBCHEPHARMJ.B. Chemicals & Pharmaceuticals Ltd.: A 30-second snapshot
JB Chemicals and Pharmaceuticals (JBCHEPHARM) trades at ₹2,140 as of mid-May 2026, up 36.7% over the past 12 months and sitting 3.8% below its 52-week high, with price above both the 50-DMA (₹2,060) and 200-DMA (₹1,846). A shareholder-approved NCLT amalgamation scheme with Torrent Pharmaceuticals, cleared in April 2026, is the dominant recent corporate event; regulatory completion timing and minority-shareholder terms remain pending. The company carries a trailing PE of 48.1x and a forward PE of 29.4x, with a 21.6% 5-year earnings CAGR and a consistency score of 88/100 — while free cash flow has been positive in only 2 of available fiscal years.
P/E
48.1
Forward P/E
29.4
ROE
—
Debt / Equity
1.07
Profit Margin
+18.0%
Div. Yield
+1.2%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
70/100
News
6 headlines · 3 positive · 0 negative
JB Chemicals Shareholders Approve Amalgamation with Torrent Pharma at NCLT Meeting - TipRanks
TipRanks
JB Chemicals Shareholders Clear Key Scheme Resolution at Court-Convened Meeting - TipRanks
TipRanks
Buy JB Chemicals and Pharmaceuticals; target of Rs 2400: Prabhudas Lilladher - TradingView
TradingView
JBCHEPHARM: Operational reset led to lower revenue but improved margins; India branded business outperformed - TradingView
TradingView
JB Chemicals & Pharmaceuticals Sets Investor Call to Discuss Q4 FY26 Results - TipRanks
TipRanks
Recent context
- ·In April 2026, shareholders approved a key scheme resolution at a court-convened meeting related to the proposed amalgamation with Torrent Pharmaceuticals — the NCLT process is ongoing with regulatory completion yet to be confirmed.
- ·A Q4 FY26 results update cited an operational reset that led to lower revenue but improved margins, with the India branded business described as outperforming — a pattern of margin recovery at the cost of near-term top-line growth.
- ·Prabhudas Lilladher issued a note on 13 May 2026 with a stated price target of ₹2,400 — representing the named broker's own view and not a view expressed by VivaTrades.
Strengths
- +Highest quality score among 6 sector peers at 54/100, ranking 1st — above Sun Pharma (50), Max Healthcare (54, tied), and well above Dr. Reddy's (17) and Cipla (24).
- +Five-year earnings CAGR of 21.6% paired with a consistency score of 88/100 indicates above-average earnings durability over the measurement period.
- +Debt trend is falling with D/E at 1.075x; debt-to-equity started higher and has been reducing, lowering solvency risk trajectory.
- +Price is above both 50-DMA (₹2,060) and 200-DMA (₹1,846), with RSI at 58.95 (neutral zone) — no extreme technical readings currently present.
Weaknesses
- −FCF was positive in only 2 of available fiscal years, a meaningful gap relative to reported earnings growth; free cash conversion has been inconsistent, which limits the quality of reported profitability.
- −Trailing PE of 48.1x is above Cipla (29.8x), Dr. Reddy's (26.5x), and Sun Pharma (41.3x); the premium is large relative to most domestic pharma peers, concentrating valuation risk if forward earnings estimates prove optimistic.
- −NCLT amalgamation with Torrent Pharmaceuticals introduces corporate-action uncertainty; minority-shareholder terms and regulatory timeline are unresolved as of the run date.
- −ROE is unavailable for the period, preventing a return-on-equity assessment — peer ROEs of 11.7% (Cipla) and 11.8% (Dr. Reddy's) provide context but JBCHEPHARM cannot be directly benchmarked on this metric.
Open questions
- ?Does the gap between the trailing PE (48.1x) and forward PE (29.4x) reflect genuine near-term earnings acceleration, or does it rest on analyst estimates that depend on the amalgamation completing on favorable terms?
- ?How has the company's FCF generation pattern changed quarter by quarter — and does the recent margin improvement in the India branded segment signal a structural shift in cash conversion?
- ?What are the specific exchange ratios and minority-shareholder entitlements under the Torrent Pharma amalgamation scheme, and how does the implied valuation compare to the current market price?
- ?Is the 88/100 consistency score in earnings driven by the domestic branded business, by the international business, or by both — and which segment carries more concentration risk going forward?
Peer comparison: Pharma
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| JBCHEPHARM | J.B. Chemicals & Pharmaceuticals Ltd.You're viewing | 48.1 | — | 54 |
| Industry avg | across 5 peers | 46.9 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.5 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.5 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.5 | +11.8% | 17 |
Technical state
Current price
₹2,140.40
SMA 50
₹2,060.42
SMA 200
₹1,845.50
RSI (14)
59.0 (neutral)
From 52w high
-3.8%
1Y return
+36.6%
3M return
+13.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumA shareholder-approved NCLT amalgamation scheme with Torrent Pharmaceuticals was reported in April 2026. Regulatory completion timelines and the specific terms affecting minority shareholders remain open — this is a material corporate-action overhang that has not yet resolved.
- mediumFCF was positive in only 2 of the available fiscal years, indicating that the 21.6% 5-year earnings CAGR has not consistently translated into free cash generation. D/E stands at 1.075x, though the debt trend is described as falling.
- mediumTrailing PE of 48.1x sits above comparable pharma peers Cipla (29.8x) and Dr. Reddy's (26.5x), and above Sun Pharma (41.3x). Forward PE compresses to 29.4x, reflecting market expectation of near-term earnings growth — a gap that may not close if growth disappoints.
- lowROE data is unavailable for this stock, limiting quality-adjusted peer comparison. Sector peers Cipla and Dr. Reddy's show ROEs of 11.7% and 11.8% respectively; JBCHEPHARM's own ROE cannot be benchmarked.
- lowNews sample totals 6 articles — thin coverage that limits confidence in the sentiment reading (3 positive, 3 neutral, 0 negative). The amalgamation-related headlines dominate the recent news flow.
Cross-section contradictions
- Earnings have grown at a 21.6% 5-year CAGR with a consistency score of 88/100, yet FCF was positive in only 2 of the available fiscal years — reported earnings have not reliably converted to cash generation over the same period.
- The pending Torrent Pharma amalgamation is a material structural event, yet news sentiment shows 0 negative articles out of 6. This may reflect sparse coverage rather than an absence of investor concern about the transaction terms.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days