J B Chemicals & Pharmaceuticals Ltd (JBCHEPHARM) — share price & stock analysis

Market cap

₹36,896 Cr

P/E

51.4×

ROE

18.9%

vs own 10-yr valuation

83rd pctile

Book value / share

₹259

EPS (TTM)

₹44.7

10-yr median P/E

38.4×

Revenue (FY26)

₹4,148 Cr

Profit after tax (FY26)

₹709 Cr

Weinstein stage

Stage 2 (32 weeks)

Data as of

1 July 2026

2 of the 6 things we track are currently moving the right way — most of the dashboard is red.

Where the levels actually stand: ROCE 25% — a high-quality engine; effectively no debt; margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

Most of this rally is re-rating, not earnings

Since Jul 2019, the stock is up 1,139% while earnings per share grew 296%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 51.4× means the market is paying up — this is the expensive end of its own history since 2019 (83rd percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (38.4×).

Stage 2: the trend is up, and has been for 32 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 32 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹1,979 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 36 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Up in 10 of 12 years — the long arc of a compounder

Over 12 years, sales went from ₹1,022 Cr to ₹4,148 Cr (about 12% a year), and profit from ₹62.0 Cr to ₹709 Cr.revenuenet_profit

Margins widened 12.2 points along the way — growth with improving economics.operating_profit

Sales have gone quiet — growth has stalled

Mar 26 sales were ₹904 Cr, down 5% on the same quarter last year.revenue

A shrinking topline puts the burden of the story on margins and one-offs — watch whether this is a pause or a slide.

Margins are compressing — 24% → 22% in a year

Of every ₹100 of sales, the company keeps ₹22.2 as operating profit (a year ago it kept ₹23.9).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 22.1% in FY23 and has been rebuilt to 26.7% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (66% → 70%), so the change came from running costs — overheads are growing faster than sales.gpm_pctopm_pct

Profit fell hard 31% — mostly from income from outside the core business

Mar 26 profit after tax was ₹101 Cr, down 31% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹2,718 Cr of profit and collected ₹3,203 Cr of operating cash — about 118% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 151 days to go out the door as materials and come back as collected cash — up from 109 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (147 → 192 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹311 Cr (FY14) to ₹1,885 Cr, with another ₹74.0 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹1,286 Cr) fits inside the operating cash the business generated (₹2,407 Cr).investing_cash_flowoperating_cash_flow

Almost no debt — this company cannot be killed by a bad year

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹0 — total borrowings have shrunk from ₹93.0 Cr to ₹4.0 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹25 — a high-quality engine

Return on capital employed is 25.0% (a year ago: 26.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 48.8% (down 4.9 points over 8 quarters). Foreign funds own 16.3%, domestic funds 21.4%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Mar 25) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

Domestic funds tell the real story: they sold from 18.6% down to 16.4% (Dec 24), and have been buying back since — now 21.4%. A completed round trip like that usually means the doubts got answered.diis_pct

One to watch, not one to study deeper yet

The numbers say be careful, and the price already assumes the good news continues.

Best thing in the data: debt improving (0.01× → 0×).borrowings

Biggest worry: free cash flow falling (₹606 Cr → ₹118 Cr).operating_cash_flow

One dissent worth hearing: our quality & safety lens reads positive — “Quality & Safety: 20.0/30 (non-financial). Earnings stability: 8/8 quarters profitable → 5/5. Return durability: Avg ROCE 24.2% over 5Y → 6/6. Margin quality: O”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data