Jagsonpal Pharmaceuticals Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Jagsonpal Pharmaceuticals Ltd trades at ₹233, in a confirmed uptrend and 13 weeks into that stage. That is +8.0% against its own 200-day average. It sits at 88% of a 52-week range of ₹164 to ₹242. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 31 straight weeks.

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹233 it trades +8.0% versus its 200-day average and sits at 88% of its 52-week range (₹164–₹242).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,403% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 31 straight weeks — the ribbon below is that same metric, week by week.

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

Story check

Jagsonpal Pharmaceuticals Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_CONTRACTION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Specialty pharma formulator expanding into institutional hospitals via Equitas, but current 21% operating margins sit at an 86th-percentile historical peak that exposes trailing earnings to mean-reversion risk.

What is proven. Specialty pharma formulator expanding into institutional hospitals via Equitas, but current 21% operating margins sit at an 86th-percentile historical peak that exposes trailing earnings to mean-reversion risk.

What is not proven yet. Branded formulation revenue sustaining above 15% YoY growth for three consecutive quarters with operating margins holding above 20% on organic gross-margin expansion and monthly medical-representative productivity exceeding 2.5 lakh rupees.

🚨 What would change our mind. Branded formulation revenue sustaining above 15% YoY growth for three consecutive quarters with operating margins holding above 20% on organic gross-margin expansion and monthly medical-representative productivity exceeding 2.5 lakh rupees.

🚨 Layer 1 read, 22 August 2026 — DROP. The 25% profit fall is just lapping a one-off — but management broke six promises across four calls. The headline earnings decline dissolves on inspection: December 2024 booked Rs 26 Cr of other income inside Rs 39 Cr of pre-tax profit, and lapping that single quarter is the whole story; strip it and FY26 profit grew 38.7% on revenue up 7.9% in the latest quarter. The problem is what management says. FY26 revenue guidance went from 15% to 10% and landed at 6.7%, the dividend terms were altered after announcement, and in the July 2026 call management flatly denied having discussed a breakthrough-molecule opportunity it had described on an earlier call. At the same time operating margin sits at the 86th percentile of its own decade, which lifts the true multiple to 63.6x, and FY27 growth is…

What would change Layer 1’s mind. Branded formulation revenue growing above 15% year on year for three consecutive quarters with operating margin holding above 20% — that would show the margin has a volume engine and is a re-based floor rather than a cost-discipline peak, and would justify re-rating this out of the bottom of the slate. The reverse trigger is operating margin slipping below 18% for two consecutive quarters while Equitas fails to add Rs 2 Cr of EBITDA after four quarters of integration.

The test written in advance. Branded formulation revenue sustaining above 15% YoY growth for three consecutive quarters with operating margins holding above 20% on organic gross-margin expansion and monthly medical-representative productivity exceeding 2.5 lakh rupees. — the thesis as written as stated by the next result.

The test written in advance. Peak Margin Mean-Reversion Risk — Peak Margin Mean-Reversion Risk Quarterly operating profit margin slipping below 18% in two consecutive quarters. by the next result.

The test written in advance. Hospital Procurement Price Erosion in Equitas — Hospital Procurement Price Erosion in Equitas Equitas EBITDA contribution remaining below 2 crore rupees after four quarters of integration. by the next result.

What the company does. Jagsonpal delivers cash conversion with a cash reserve of 170 crore rupees supporting capital returns. However, reported trailing EPS of 6.84 rupees is supported by peak operating margins of 20-21% compared with a 10-year normalized median of 9.8%. Repeated guidance misses and lower-margin hospital acquisition economics require a cautious valuation framework until organic volume acceleration is proven.

🚨 What the surface reading misses. The surface reading is: Trailing PE of 33.5x sits at the 54th percentile of 10-year history, appearing reasonably priced. The research reads it further: Trailing EPS of 6.84 rupees is elevated by peak operating margins of 20-21% (86th percentile of history versus 9.8% median). Normalized PE rises to 63.6x (98th percentile), indicating a peak-margin valuation trap.

🚨 What the surface reading misses. The surface reading is: ROCE of 22.7% and ROE of 17.3% indicate returns above the cost of capital. The research reads it further: Current returns should not be capitalized without adjusting for the at-peak 21% operating margin and cash-backed other income in the earnings base.

Lever 2 · Value-added mix — BUILDING. Portfolio migration from acute commodity volume to higher-margin specialty and semi-chronic formulations in gynecology and dermatology. What proves it keeps working: Core Therapy Premiumization and Specialty Mix. It stops working if Volume contraction in mature legacy lines outpaces the revenue contribution from specialty brand additions.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Jagsonpal Pharmaceuticals Ltd reported ₹82.0 Cr of revenue in the Jun 26 quarter, +7.9% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 7.2% a year. The last full year, FY26, came in at ₹287 Cr. The last four reported quarters add to ₹293 Cr.

Why this happened. Management completed an internal recalibration of its 1,000-person sales force across four divisions, stabilizing attrition and introducing structured training and incentive programs. Under a zero-new-addition model, FY27 volume expansion is intended to flow through productivity improvements of existing representatives, targeting per-capita productivity above 2.5 lakh rupees per month from previous sub-peer levels.

FY26 revenue came in at ₹287 Cr (+6.7% on the year), capping 10 years at 7.2% compound. The latest quarter (Jun 26) printed ₹82.0 Cr, +7.9% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +3.4% growth against the decade's 7.2% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +3.2% over the last 4 quarters against +18.4%/yr over the last 8 — rolling over; TTM profit −24.6% vs +51.7%/yr — rolling over.

FY26-Q4. revenue ₹64 Cr and profit ₹9 Cr as reported.

FY27-Q1. revenue ₹82 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Jagsonpal Pharmaceuticals Ltd's operating margin is 21.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged −9.0% to 20.0%. The current quarter is running above every full year in that window.

Why this happened. The company is transitioning its product basket away from low-margin acute drugs toward specialty semi-chronic therapies where new-brand monthly sales run rates have nearly doubled. Power brands grew 19.0% YoY in Q1 FY27 compared with 16.0% market growth, with 5 brands holding number-one molecular ranks and 14 in the top five. Key franchises such as Mantain (MAT near 46 crore rupees) and Indocap provide pricing support as 92% of the portfolio sits outside price control.

The latest quarter's operating margin is 21.0%, +2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −9.0%–20.0%, and FY26's 20.0% is the top of that band — a record year.

Why the margin moved: operating margin went +2.2 pp year on year while gross margin went +0.8 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹64 Cr and profit ₹9 Cr as reported.

FY27-Q1. revenue ₹82 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Jagsonpal Pharmaceuticals Ltd earned ₹13.0 Cr of net profit in the Jun 26 quarter, +18.2% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹43.0 Cr. The 10-year compound rate is 30.5%. That is 15.9% of the quarter's revenue. The same quarter a year earlier earned ₹11.0 Cr.

Jun 26 profit was ₹13.0 Cr, +18.2% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹43.0 Cr (−21.8%), and the 10-year compound rate is 30.5%.

Why profit moved: revenue contributed +7.9% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit −0.1% vs revenue +3.4%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

FY26-Q4. revenue ₹64 Cr and profit ₹9 Cr as reported.

FY27-Q1. revenue ₹82 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 114% of Jagsonpal Pharmaceuticals Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹47.0 Cr of operating cash against ₹43.0 Cr of profit. After ₹0.0 Cr of capital spending, ₹47.0 Cr was left as free cash.

Why this happened. The company reported 170 crore rupees in cash and liquid equivalents. Over the past four years, management said operating cash generation exceeded 250 crore rupees and was deployed toward acquisitions, dividends of over 40 crore rupees, and a 40 crore rupee share buyback. This liquidity provides self-funding capacity for bolt-on brand acquisitions, subject to acquisition valuation and integration discipline.

FY26: operating cash of ₹47.0 Cr against reported profit of ₹43.0 Cr, leaving free cash of ₹47.0 Cr after ₹0.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 114% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 114%: the cash cycle tightened 44 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 4.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Jagsonpal Pharmaceuticals Ltd's cash conversion cycle runs 33 days in FY26, down from 77 days in FY21. Capital spending ran ₹80.0 Cr over the last 3 years. At FY26 sales of ₹287 Cr each day of that cycle holds about ₹0.8 Cr, so roughly ₹26.0 Cr sits inside the business at any moment.

Why this happened. Jagsonpal acquired 85% of Equitas Healthcare for 20.8 crore rupees, adding an ICU-focused branded injectable portfolio with FY26 revenue of 53 crore rupees. The acquisition provides almost 49 institutional representatives and relationships with 4,000 specialists across major hospital chains including Max, Manipal, Medanta, and Cloud9. Management targets scaling Equitas to 100 crore rupees revenue and upward of 10 crore rupees EBITDA within 30 months by cross-selling core brands like Indocap and Mantain.

FY26: debtors at 22 days, inventory at 51 days — roughly 1.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 33 days, tighter than FY21's 77.

The full loop: cash goes out to suppliers and production on day 0; stock waits 51 days to sell; customers pay about 22 days after that; and suppliers themselves are paid at 40 days — netting out to the 33-day cycle.

In money terms: at FY26 sales of ₹287 Cr, each day of the cycle holds about ₹0.8 Cr — so the 33-day loop keeps roughly ₹26.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹80.0 Cr over the last 3 fiscal years against ₹19.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Jagsonpal Pharmaceuticals Ltd earns a ROCE of 23% in FY26. That is up from a trough of −10% in FY18. Return on invested capital clears the cost of that capital by +9.8 percentage points, so growth here adds value rather than only size. The wiring behind it is 15.0% net margin on 0.91× asset turns.

FY26 ROCE is 23%, recovered from a FY18 trough of −10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 15.0% net margin × 0.91× asset turns × 1.15× balance-sheet leverage ≈ 15.7% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 21.8% − 12.0% = a +9.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Jagsonpal Pharmaceuticals Ltd carries total debt of ₹8.0 Cr against shareholder equity of ₹276 Cr as of Mar 26, a debt-to-equity of 0.03 — effectively unlevered. On the annual view that ratio went from 0.04 in FY23 to 0.03 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹8.0 Cr against shareholder equity of ₹276 Cr — a debt-to-equity of 0.03. On the annual view, debt-to-equity went from 0.04 (FY23) to 0.03 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.2 points of Jagsonpal Pharmaceuticals Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 2.3% of the company. Promoters moved +1.0 points over the same window, to 69.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.2 points over 8 quarters to 2.3%; Promoters: +1.0 points over 8 quarters to 69.1%; Domestic institutions: −0.2 points over 8 quarters to 0.6%.

Why the register moved: foreign institutions drove it (+1.2 points), alongside promoters (+1.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Jagsonpal Pharmaceuticals Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Jagsonpal Pharmaceuticals Ltd trades at 32.7× P/E, mid-range by its own standards (55th percentile). Its long-run median P/E is 31.4×, measured across 10.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 32.7× is mid-range by its own standards (55th percentile), against a long-run median of 31.4× measured over 10.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −22.9% against a −3.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +28.1%/yr price move, ~+16.7%/yr came from earnings growth and ~+11.4 pp from the multiple (expanding); over 10y, of the +31.9%/yr price move, ~+29.8%/yr came from earnings growth and ~+2.1 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Jagsonpal Pharmaceuticals Ltd was paying for profit growth of about 19.3% a year. Profit itself has compounded 30.5% a year over the past 10 years. Today the market pays 32.7× P/E, the 55th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Topping out Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Jagsonpal Pharmaceuticals Ltd reads as topping out on its fundamental arc. Topping out — revenue, profit and EPS growth have decelerated hard (revenue growth +29.3% at its peak → +3.2% latest) while ROCE still reads 23.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: decelerating from a peak is where good stories quietly end — the multiple usually notices late.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

51.1/100 — rank 6 of 14 in Pharma - API · 87% evidence confidence

Jagsonpal Pharmaceuticals Ltd scores 51.1 out of 100 against the 14 companies it is compared with in Pharma - API, ranking 6. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 15.7 + 18.9 + 11.1 + 5.4 = 51.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Jagsonpal Pharmaceuticals Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Special Dividend Terms Changed · 30 July 2026. In April 2026, management described the recommended 200% dividend as including a 75% one-time special dividend. In July 2026, management described the same 200% dividend as including only a 25% special dividend, a material change to the shareholder return terms that was not explained.

Previously Disclosed First-in-India Pipeline Denied · 30 July 2026. The January 2026 call explicitly discussed a breakthrough, first-in-India product opportunity and indicated that an announcement was expected by May or June. In July 2026, management said it had never mentioned such a pipeline, contradicting the earlier statement and leaving the status of that product opportunity unexplained.

🚨 FY26 Revenue Guidance Miss Without Acknowledgment · 28 April 2026. In the Nov 2025 call, management explicitly targeted approximately 10% revenue growth for FY26, with Manish Gupta stating 'I am talking of this year, with accelerated growth thereafter.' FY26 actual revenue growth came in at ~7%, a meaningful 3-percentage-point miss against this stated target. The Apr 2026 call presents the 7% result without acknowledging the earlier 10% guidance or reconciling the shortfall, leaving investors without clarity on what drove the gap between the stated annual target and actual delivery. Earlier call (Nov 2025): “we are targeting about 10% growth overall as an organization in the medium-term… I am talking of this year, with accelerated growth thereafter”. Later call (Apr 2026): “For FY26, while the revenue growth has been modest at around 7%, our net profit has grown at 19% before exceptional items.”

🚨 Revenue Guidance Deterioration · 22 January 2026. Management has consistently missed and lowered growth expectations. In July 2025, they guided for 15% growth for the full year, and in November 2025, they lowered this to 10%. actual performance reported in January 2026 shows only 6% YTD growth with Q3 revenue being flat/negative, significantly undershooting both prior guidance targets. Earlier call (Jul 2025): “We still stick to overall guidance of 15% for the year. Pharma industry, as we are all aware, is not growing as fast as it used to...” Earlier call (Nov 2025): “Generally speaking, we are targeting about 10% growth overall as an organization... for the rest of the year, you can consider about a 10% growth.” Later call (Jan 2026): “On a nine-month or year-to-date basis, we had a resilient performance with 6% growth in topline... Our third-quarter performance remained largely flattish with revenue at 73 crores... a minuscule degrowth (-1%).”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions