1. At a Glance
Jubilant Ingrevia (CMP ₹808) is India’s specialty chemicals and life-sciences spin-off from Jubilant Life Sciences. Over FY21–25, revenue grew at a 1 % CAGR, profit at 34 % CAGR TTM, ROCE 11 %, ROE 9 %, and it trades at 51× EPS ₹15.8. A steady grower with niche muscle, but not exactly lighting fireworks.
2. Introduction with Hook
Remember when your chemistry teacher warned you about volatile reactions? Jubilant Ingrevia decided to bottle some of that volatility—minus the bangs—into pyridine, vitamin B3, and custom pharma intermediates. Half a decade in, the stock is more Bunsen burner than life-changing rocket. Let’s see if its mix of legacy and lab-grade specialty has any pop left.
3. Business Model (WTF Do They Even Do?)
- Core Products: Pyridine and derivatives (solvents, agrochemical building blocks).
- Nutrition & Pharma: Beta-Vitamin B3 (niacinamide) and B6, custom research & manufacturing for top global pharma.
- Agro Solutions: Intermediates for herbicides and pesticides, serving 7 of the world’s top 10 agrochemical majors.
- Integrated Model: From R&D to cGMP facilities—control over quality and cost.
- Global Reach: Exports to 70+ countries, lean manufacturing footprint in India keeps costs low.
4. Financials Overview – Profit, Margins, ROE, Growth
- Revenue: ₹4,178 Cr in FY25 vs ₹4,136 Cr in FY24 (+1 % TTM).
- EBITDA: OPM improved to 12 % in FY25 vs 10 % in FY24, driven by higher-margin specialty chemicals.
- Profit: ₹251 Cr in FY25 vs ₹183 Cr in FY24 (+37 % TTM).
- ROE/ROCE: 8.9 %/11.1 % in FY25—modest for specialty peers but rising from single digits.
- Growth: Profit CAGR 331 % over 5 yrs (base effect after demerger), 34 % TTM; sales flat due to product-mix shift.
5. Valuation – Is It Cheap, Meh, or Crack?
- EPS: ₹15.77 (FY25).
- Current P/E: 51.2×.
- Peer P/E Range: Deepak Nitrite 39×, Vinati Organics 48×, Gujarat Fluorochem 68×, Navin Fluorine 87×.
- Fair Value Range:
- Conservative (40×): ₹15.77 × 40 = ₹630
- Optimistic (60×): ₹15.77 × 60 = ₹946
- Rationale: At ₹808, it sits between these bands—neither bargain basement nor bubble territory.
6. What’s Cooking – News, Triggers, Drama
- New cGMP Facility: Commissioned Niacinamide plant in Jan ’25—boosts capacity by 25 %.
- Renewable Energy Tie-Up: O2 Power JV for captive solar—cuts power costs in long-run.
- USFDA EIR: Zero observations in 2024 audit—no quality skeletons in the closet.
- Police Probe Rumor: Chairman denial headlines—monitor governance KPIs.
7. Balance Sheet – How Much Debt, How Many Dreams?
- Equity + Reserves: ₹2,927 Cr.
- Borrowings: ₹764 Cr (net debt/EBITDA ~1.4×).
- Investments & Cash: Minor—focus is CAPEX, not financial assets.
- Total Assets vs Liabilities: ₹5,032 Cr assets to ₹5,032 Cr liabilities—standard chemical firm structure.
8. Cash Flow – Sab Number Game Hai
- Operating CF: +₹508 Cr (FY25) on ₹4,178 Cr revenues—healthy cash conversion given CAPEX cycle.
- Investing CF: –₹393 Cr (CAPEX on new facilities).
- Financing CF: –₹129 Cr (dividend payout ~₹79 Cr, debt servicing).
- Net Cash Flow: –₹13 Cr—effectively breakeven after reinvestment.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | Benchmark | Comment |
|---|---|---|---|
| ROCE | 11.1 % | 15–20 % | Room to climb as new capacity kicks in |
| ROE | 8.9 % | 12–15 % | Below peer average |
| Net Debt/EBITDA | 1.4× | <1× ideal | Moderate leverage |
| Interest Coverage | 6× | >5× | Comfortable |
| Dividend Payout | 31 % | 30–50 % | Balanced with reinvestment |
10. P&L Breakdown – Show Me the Money
- Sales: ₹4,178 Cr
- COGS & Opex: ₹3,659 Cr (COGS ₹3,200 Cr, SG&A ₹459 Cr)
- Gross Profit: ₹519 Cr → Gross Margin ~12 %
- Other Income: ₹38 Cr
- EBIT: ₹519 Cr (OPM 12 %)
- Interest: ₹56 Cr
- PBT: ₹344 Cr
- Tax (27 %): ₹93 Cr
- Net Profit: ₹251 Cr
11. Peer Comparison – Who Else in the Game?
| Company | CMP (₹) | P/E | ROE | 1-yr Perf | Mar Cap (Cr) |
|---|---|---|---|---|---|
| Deepak Nitrite | 1 988 | 39× | 14 % | +18 % | 27 105 |
| Vinati Organics | 1 929 | 48× | 16 % | +22 % | 20 014 |
| Jubilant Ingrevia | 808 | 51× | 9 % | +35 % | 12 864 |
| Gujarat Fluorochem | 3 383 | 68× | 8 % | +8 % | 37 139 |
| Navin Fluorine | 5 073 | 87× | 11 % | +16 % | 25 147 |
Jubilant Ingrevia sits mid-pack on valuation and below peers on returns, but its 35 % one-year price gain shows momentum.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 51.5 % (Jubilant group).
- FIIs / DIIs: ~7 % / 16 %.
- Public Float: ~25 %.
- Key KMP: CEO Harsha Chitale; CFO Pratik Shah.
- Board Notes: Independent directors count above regulatory minimum—governance tick.
13. EduInvesting Verdict™
Jubilant Ingrevia is the reliable lab partner who won’t steal your Nobel but will keep the reactions steady. Niche expertise in pyridine and vitamin complexes ensures a moat, but moderate leverage and middling ROE cap the upside. At ₹808, it trades inside our ₹630–₹946 fair-value corridor—so expect methodical, not meteoric, returns.
Tags: JUBLINGREA, Specialty Chemicals, Life Sciences, Pyridine, Niacinamide, FY25, Fair Value, EduInvesting
✍️ Written by Prashant | 📅 July 12, 2025
