Jubilant Ingrevia Shows Strong Debt Management Amid Long-Term Growth Concerns

Jubilant Ingrevia, a midcap player in the Pharmaceuticals & Drugs industry, has recently undergone an adjustment in evaluation, reflecting a nuanced view of its financial standing. The company reported positive financial performance for the quarter ending December 2024, showcasing a robust ability to service its debt, evidenced by a low Debt to EBITDA ratio of 1.15 times.
Key performance indicators highlight a strong operating profit to interest ratio, which reached its highest level at 11.16 times, alongside a PBDIT of Rs 138.29 crore. Additionally, the operating profit to net sales ratio also marked a peak at 13.09%.

Despite these positive metrics, the company faces challenges in long-term growth, with net sales declining at an annual rate of 1.06% and operating profit decreasing by 23.51% over the past five years. The return on capital employed stands at 7.8, indicating a valuation that may be considered expensive, particularly with an enterprise value to capital employed ratio of 3.3.

Institutional holdings are notably high at 22.89%, suggesting a strong analytical capability among these investors. Overall, while Jubilant Ingrevia has demonstrated market-beating performance with a return of 55.86% over the last year, its profit growth has been modest at 0.2%, leading to a PEG ratio of 52.9.

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