1. At a Glance
Jagsonpal Pharmaceuticals is a ₹1,680 Cr midcap player dominating India’s gynecology and orthopaedics pharma market with margin-rich products, a 900+ strong sales force, and now—USFDA drama, a ₹41 Cr asset sale, and one fat 125% dividend.
2. Introduction with Hook
Imagine a soap opera set in a pharmacy—there’s a CEO making strategic acquisitions, the CFO dramatically exits, the USFDA throws a plot twist, and somewhere between all this, profit doubles. Welcome to Jagsonpal Pharma: the drama queen of healthcare smallcaps.
- FY25 Revenue: ₹269 Cr (+28.8%)
- FY25 PAT: ₹55 Cr (+150%)
- Dividends: 125% payout—more generous than your NRI uncle in December
3. Business Model (WTF Do They Even Do?)
Jagsonpal makes and sells essential medicines primarily for:
- Gynecology: 47% of revenue from top 5 brands
- Orthopaedics
- OTC, Dermatology, Pediatrics, Immunity
It owns 17 top-5 brands in their respective molecule categories, maintains a 900+ strong sales army, and has been busy buying out Yash Pharma and Resilient Cosmeceuticals to diversify and grow.
It’s basically the Durex of hormone therapies. Only with more margin and less awkwardness.
4. Financials Overview
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | OPM (%) | ROCE (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY23 | 237 | 27 | 14% | 25% | 4.08 |
| FY24 | 209 | 22 | 11% | 17% | 3.40 |
| FY25 | 269 | 55 | 19% | 23% | 8.34 |
- Strong bounce back post FY24 slowdown
- Operating margin of 19% = pricing power + brand stickiness
- 3Y Profit CAGR: 29%
- 3Y ROE: 17%, and Cash Conversion Cycle down to 39 days
5. Valuation
- CMP: ₹253
- EPS (FY25): ₹8.34
- P/E: 30x
- Industry Median P/E: ~33x
Fair Value Range
- Base Case (25x): ₹208
- Bull Case (35x): ₹292
- EduInvesting FV Range: ₹208 – ₹292
At 30x P/E, it’s priced like a moody starlet—some drama baked in, some upside possible.
6. What’s Cooking – News, Triggers, Drama
- May 2025: FY25 results smash it: Revenue +28.8%, PAT +150%, 125% dividend
- Apr 2025: ₹5 Cr customs duty issue confirmed
- Mar 2025: CFO resigned
- Feb 2025: USFDA warning on Tolnaftate API
- Feb 2025: Acquires Resilient Cosmeceuticals for ₹24 Cr
- Nov 2024: Sells Faridabad facility for ₹41 Cr
- May 2024: Acquires Yash Pharma’s India & Bhutan biz
Basically, they’ve been as busy as a dermatologist during wedding season.
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Reserves | 146 | 174 | 227 |
| Debt | 6 | 9 | 9 |
| Total Assets | 195 | 217 | 278 |
| Fixed Assets | 24 | 9 | 94 |
Highlights:
- Almost debt-free
- Big jump in fixed assets in FY25 (post-acquisition)
- Reserves up ₹81 Cr over 2 years—a juicy capital base for further expansion
8. Cash Flow – Sab Number Game Hai
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | 47 | 35 | 55 |
| Investing Cash Flow | -58 | -25 | -45 |
| Financing Cash Flow | 0 | -9 | -12 |
| Net Cash Flow | -11 | 2 | -2 |
- Operating cash strong and steady
- Investing cash drain due to acquisitions (but growth-justified)
- Dividend & debt repayments sucking up free cash
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 25 | 17 | 23 |
| ROE (%) | 18.6 | 17 | 19 |
| OPM (%) | 14 | 11 | 19 |
| Debtor Days | 32 | 19 | 18 |
| CCC (Days) | 48 | 53 | 39 |
Verdict: Sexy. Operationally lean, working capital efficient, and ROE in late teens.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Operating Profit | Net Profit | EPS (₹) |
|---|---|---|---|---|
| FY23 | 237 | ₹34 Cr | ₹27 Cr | 4.08 |
| FY24 | 209 | ₹23 Cr | ₹22 Cr | 3.40 |
| FY25 | 269 | ₹51 Cr | ₹55 Cr | 8.34 |
- FY24 dip = USFDA noise + infra transition
- FY25 = New avatar post M&A with better margins
11. Peer Comparison
| Company | P/E | ROCE (%) | EPS (₹) | OPM (%) | Mcap (₹ Cr) |
|---|---|---|---|---|---|
| Sun Pharma | 35 | 20 | 28.75 | 28.75 | 4,03,591 |
| Divi’s Lab | 82 | 20 | 31.71 | 31.71 | 1,79,998 |
| Cipla | 23 | 22.7 | 25.87 | 25.87 | 1,19,860 |
| Torrent Pharma | 60 | 27 | 32.31 | 32.31 | 1,15,268 |
| Jagsonpal Pharma | 30 | 23 | 8.34 | 19.0 | 1,680 |
Despite its small size, Jagsonpal holds its own on margins and returns. A “Smallcap Cipla,” if you will.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Stable at 67.77% (Mar 2025)
- FII holding: 2.1% (UP from 0.1% in Sep 2022)
- Retail Public: ~30%
- Biggest boost: 125% dividend + new branding with launches like MemUp (India’s first bioidentical hormone therapy)
13. EduInvesting Verdict™
Jagsonpal Pharma is not just another smallcap pharma with hormone dreams. It’s a profitability engine with:
- Solid RoCE
- Strong branding in women’s health
- Near zero debt
- Robust dividend policy
But keep an eye on:
- USFDA compliance (Tolnaftate warning)
- Execution of post-acquisition integration
- FY26 performance post Faridabad exit
Bottom line?
It’s like a generic version of Divi’s meets Cipla with extra gynaecology and drama. Only time will tell if this script ends in a blockbuster or another FDA season finale.
Metadata
– Written by EduInvesting Analyst Team | July 14, 2025
– Tags: Pharmaceuticals, Smallcap, Healthcare, Dividend Stocks, USFDA, Gynecology Pharma
