The stock has underperformed significantly, declining 4.40% on January 19, 2026, to close at ₹37.19, extending its one-year loss to 22.50% against the Sensex's 8.65% gain. With a proprietary Mojo Score of just 17 out of 100 and a "STRONG SELL" rating, Jupiter Infomedia exemplifies the challenges facing micro-cap digital businesses struggling to establish sustainable revenue models.
The December quarter results reveal a company in operational turmoil. Whilst the consolidated net profit of ₹0.10 crores represents a sequential improvement from the ₹0.42 crores loss in Q2 FY26, it deteriorated sharply on a year-on-year basis, declining 88.35% from the ₹0.86 crores profit in Q3 FY25 (when adjusted for the ₹1.03 crores loss reported). The marginal profitability appears driven primarily by tax adjustments rather than genuine operational improvements, raising serious questions about earnings quality.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Cons. Net Profit (₹ Cr) | YoY Change |
|---|---|---|---|---|
| Dec'25 | -0.05 | -105.68% | -0.12 | -88.35% |
| Sep'25 | 0.88 | -46.01% | -0.42 | -112.39% |
| Jun'25 | 1.63 | +379.41% | 1.33 | -46.37% |
| Mar'25 | 0.34 | -191.89% | -1.66 | — |
| Dec'24 | -0.37 | -156.06% | -1.03 | — |
| Sep'24 | 0.66 | -47.62% | 3.39 | — |
| Jun'24 | 1.26 | — | 2.48 | — |
Financial Performance: A Business Model in Crisis
Jupiter Infomedia's Q3 FY26 financial performance exposes fundamental weaknesses in its business model. Net sales of -₹0.05 crores represent an extraordinary deterioration, plunging 105.68% quarter-on-quarter from ₹0.88 crores in Q2 FY26 and collapsing 86.49% year-on-year from -₹0.37 crores in Q3 FY25. Negative revenue is exceptionally rare and typically indicates significant customer refunds, contract reversals, or accounting adjustments that overshadow any new business generation.
The operating profit (PBDIT) excluding other income stood at -₹0.64 crores in Q3 FY26, representing a margin of 1,280.0% on the negative revenue base—a meaningless metric that underscores the company's complete operational breakdown. Employee costs of ₹0.30 crores during the quarter, whilst down from ₹0.35 crores in Q2 FY26, consumed resources without generating corresponding revenue, highlighting severe productivity challenges.
Critically, other income of ₹0.30 crores in Q3 FY26 remained the only positive revenue stream, maintaining consistency with Q2 FY26's ₹0.30 crores but collapsing from ₹2.59 crores in Q1 FY26 and dramatically lower than the ₹8.45 crores recorded in Q2 FY25. The company's dependence on non-operating income to offset operational losses highlights the absence of a viable core business. For the full year FY25, other income of ₹10.00 crores constituted the entirety of the company's positive cash flows, masking operating losses of ₹2.00 crores.
Critical Concern: Revenue Model Collapse
Jupiter Infomedia's negative revenue of -₹0.05 crores in Q3 FY26 signals a fundamental business model failure. The company has failed to generate sustainable operating income across multiple quarters, relying entirely on other income (primarily investment gains) to maintain marginal profitability. This is unsustainable for any operating business.
Operational Challenges: Negative Capital Efficiency
The company's operational metrics paint a dire picture. Return on Equity (ROE), whilst averaging 12.84% over the long term, has turned sharply negative at -6.60% in the latest period, reflecting the erosion of shareholder value. Return on Capital Employed (ROCE) averaged just 1.71% historically and has deteriorated to negative capital employed in the latest half-year, indicating the company is destroying rather than creating economic value.
Jupiter Infomedia's balance sheet as of March 2025 shows shareholder funds of ₹26.07 crores, comprising share capital of ₹10.02 crores and reserves of ₹16.05 crores. Investments totalling ₹20.62 crores represent 79.1% of shareholder funds, suggesting the company functions more as an investment holding entity than an operational business. Current assets of ₹14.57 crores include substantial cash and cash equivalents, providing a liquidity cushion but offering no pathway to revenue generation.
The company operates with zero debt, maintaining a net cash position with an average net debt to equity ratio of -1.32. Whilst this eliminates financial risk, it also reflects the company's inability to deploy capital productively into revenue-generating activities. Fixed assets of just ₹0.51 crores as of March 2025, down from ₹0.75 crores a year earlier, indicate minimal operational infrastructure.
Quality of Earnings: Entirely Non-Operating
Jupiter Infomedia's profitability is entirely dependent on other income, primarily investment gains and interest income. For FY25, other income of ₹10.00 crores offset operating losses of ₹2.00 crores to generate net profit of ₹5.00 crores. This earnings structure lacks sustainability and fails to demonstrate genuine business viability. The company's inability to generate positive operating cash flows from its stated web information services business raises fundamental questions about its strategic direction.
E-Commerce Sector Context: Structural Headwinds
Jupiter Infomedia operates in India's highly competitive E-Retail/E-Commerce sector, which has witnessed significant consolidation and capital intensity requirements. The company's stated business model—providing online information services including business directories, encyclopaedias, yellow pages, and news—faces structural challenges from free alternatives and dominant platforms like Google, Wikipedia, and social media.
The sector has evolved dramatically since Jupiter's incorporation in 2005, with monetisation models shifting from directory listings and advertising to data analytics, subscription services, and platform fees. Jupiter's failure to adapt is evident in its declining revenue trajectory, which has fallen from ₹5.00 crores in FY23 to ₹4.00 crores in FY24 and just ₹1.00 crores in FY25—a 75.0% year-on-year collapse.
The company's 5-year sales compound annual growth rate (CAGR) of 26.74% appears misleading given the extremely low base and recent negative growth. More tellingly, the 5-year EBIT growth rate of -211.07% reflects persistent operational deterioration. The sector's average P/E ratio of 28x suggests investors are willing to pay for growth and profitability—attributes Jupiter Infomedia conspicuously lacks.
| Company | P/E (TTM) | P/BV | ROE % | Debt/Equity |
|---|---|---|---|---|
| Jupiter Infomedia | NA (Loss Making) | 1.38x | 12.84% | -1.32 |
| DSM Fresh | 30.36x | — | 0.0% | 0.00 |
| Intrasoft Technologies | 12.17x | 0.62x | 5.89% | 0.04 |
| Digidrive Distributors | 12.24x | 0.34x | 2.19% | -0.03 |
| Pace E-Commerce | 12.19x | 0.51x | 4.34% | 0.11 |
| Ahasolar Technologies | NA (Loss Making) | 1.91x | 0.13% | -0.08 |
Jupiter Infomedia's Price-to-Book Value of 1.38x appears reasonable on the surface but becomes concerning when considering the company's inability to generate operating earnings. Peers trading at lower P/BV multiples (0.34x to 0.62x) whilst maintaining positive P/E ratios suggest the market appropriately values operational businesses differently from investment holding entities. Jupiter's higher ROE of 12.84% versus peer averages around 3% is misleading, as it reflects historical performance rather than current operational reality.
Valuation Analysis: Premium Without Justification
Jupiter Infomedia's current valuation metrics present a contradictory picture. The stock trades at a Price-to-Book Value of 1.38x against shareholder funds of ₹26.07 crores (₹26.02 per share book value), implying the market assigns some premium to the company's asset base. However, with negative operating earnings, the traditional P/E ratio is not applicable, and the company is classified as "Loss Making" from an earnings perspective.
The Enterprise Value to EBITDA multiple of -0.60x and EV to EBIT of -0.53x reflect the company's negative operating performance. With an EV to Sales ratio of 0.65x, the market values the entire enterprise at just 65% of its annual revenue—except that revenue itself has turned negative in recent quarters, rendering this metric meaningless.
The company's overall valuation grade has deteriorated to "RISKY" as of January 2026, having previously been classified as "Very Expensive" and "Expensive" in late 2023 and early 2024. This downgrade reflects growing market recognition of the company's operational challenges and lack of earnings visibility.
The stock's 52-week range of ₹29.00 to ₹74.29 illustrates extreme volatility, with the current price of ₹37.19 sitting 49.94% below the high and just 28.24% above the low. This volatility, combined with a beta of 1.50, makes Jupiter Infomedia a high-risk proposition with limited upside visibility. The company pays no dividends, offering investors no income whilst they wait for an operational turnaround that shows no signs of materialising.
Shareholding: Stable Promoter Base, Zero Institutional Interest
Jupiter Infomedia's shareholding pattern reveals a completely stable structure with zero institutional participation. Promoter holding has remained unchanged at 70.73% across the last five quarters through December 2025, with the balance 29.27% held by non-institutional investors. Foreign Institutional Investors (FIIs), Mutual Funds, Insurance Companies, and other Domestic Institutional Investors (DIIs) collectively hold 0.00% of the company.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Inst. % |
|---|---|---|---|---|---|
| Dec'25 | 70.73% | 0.00% | 0.00% | 0.00% | 29.27% |
| Sep'25 | 70.73% | 0.00% | 0.00% | 0.00% | 29.27% |
| Jun'25 | 70.73% | 0.00% | 0.00% | 0.00% | 29.27% |
| Mar'25 | 70.73% | 0.00% | 0.00% | 0.00% | 29.27% |
| Dec'24 | 70.73% | 0.00% | 0.00% | 0.00% | 29.27% |
The complete absence of institutional investors signals a fundamental lack of confidence in the company's business model and growth prospects. Sophisticated institutional investors typically avoid companies with negative operating cash flows, unclear business models, and micro-cap status that limits liquidity. The frozen shareholding pattern—with no quarter-on-quarter changes—suggests limited trading activity and poor market interest.
Key promoters include Mrs. Manisha Modi (32.16%), Mr. Umesh Modi (29.09%), and Kusumben V Modi (9.48%). Positively, there is no promoter pledging of shares, eliminating one potential risk factor. However, the promoters' unwillingness or inability to increase their stake or inject fresh capital to revitalise the business raises questions about their commitment to operational improvement.
Stock Performance: Severe Underperformance Across Timeframes
Jupiter Infomedia's stock performance has been dismal across virtually all meaningful timeframes. The stock has declined 22.50% over the past year against the Sensex's 8.65% gain, generating negative alpha of -31.15 percentage points. Over two years, the stock has fallen 20.42% whilst the Sensex rallied 16.13%, producing alpha of -36.55 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -11.47% | -0.75% | -10.72% |
| 1 Month | +9.03% | -1.98% | +11.01% |
| 3 Months | -21.39% | -0.84% | -20.55% |
| 6 Months | -23.51% | +1.82% | -25.33% |
| YTD | -9.73% | -2.32% | -7.41% |
| 1 Year | -22.50% | +8.65% | -31.15% |
| 2 Years | -20.42% | +16.13% | -36.55% |
| 3 Years | +96.77% | +36.79% | +59.98% |
The only bright spot emerges in the three-year timeframe, where the stock has gained 96.77% against the Sensex's 36.79% rise, generating positive alpha of 59.98 percentage points. However, this outperformance appears to reflect a recovery from extremely depressed levels during the COVID-19 pandemic rather than fundamental business improvement. The subsequent deterioration in one and two-year returns confirms this interpretation.
Recent performance has been particularly weak, with the stock declining 11.47% over the past week and 21.39% over three months. The six-month return of -23.51% and year-to-date decline of 9.73% underscore accelerating negative momentum. The stock also underperformed its E-Retail/E-Commerce sector peers by 10.26 percentage points over the past year, with the sector declining 12.24% versus Jupiter's 22.50% fall.
From a risk-adjusted perspective, Jupiter Infomedia falls into the "HIGH RISK LOW RETURN" category, with a negative risk-adjusted return of -0.34 over the past year. The stock's volatility of 65.68% is nearly six times higher than the Sensex's 11.31%, whilst delivering negative absolute returns. The Sharpe ratio is negative, indicating investors are not being compensated for the substantial risk they assume.
Technical Analysis: Bearish Trend with Limited Support
Jupiter Infomedia's technical indicators uniformly signal caution. The overall trend turned BEARISH on January 16, 2026, at ₹38.80, deteriorating from the previous "Mildly Bearish" classification. The stock trades below all major moving averages—5-day (₹40.16), 20-day (₹38.41), 50-day (₹38.79), 100-day (₹44.27), and 200-day (₹48.46)—indicating sustained downward pressure across all timeframes.
The Moving Average Convergence Divergence (MACD) shows "Mildly Bullish" on the weekly chart but "Mildly Bearish" on the monthly chart, suggesting short-term oversold conditions within a broader downtrend. Bollinger Bands indicate "Bearish" signals on both weekly and monthly timeframes, confirming the negative momentum. The Know Sure Thing (KST) oscillator registers "Bearish" weekly and "Mildly Bearish" monthly readings.
Key technical levels provide limited support. Immediate support sits at ₹29.00, representing the 52-week low, whilst immediate resistance emerges at the 20-day moving average area of ₹38.41. Major resistance zones lie at ₹44.27 (100-day MA) and ₹48.46 (200-day MA), with the 52-week high of ₹74.29 representing a distant target that appears increasingly unattainable given current operational challenges.
Investment Thesis: Multiple Red Flags Override Limited Positives
Jupiter Infomedia's investment thesis is overwhelmingly negative across all four key parameters of the Mojo framework. The company scores just 17 out of 100, firmly in "STRONG SELL" territory, reflecting fundamental weaknesses that outweigh any potential positives.
Valuation: Classified as "RISKY," Jupiter's valuation provides no margin of safety. The stock trades at 1.38x book value despite generating negative operating earnings, making any premium unjustifiable. Traditional valuation metrics like P/E are not applicable due to losses, whilst EV/EBITDA of -0.60x reflects operational deterioration.
Quality: Graded "Below Average," the company demonstrates weak long-term financial performance. Average ROE of 12.84% masks the current negative ROE of -6.60%, whilst ROCE of 1.71% indicates minimal capital efficiency. The 5-year EBIT growth of -211.07% confirms sustained operational decline. Positively, the company maintains zero debt and no promoter pledging, but these defensive attributes cannot compensate for the absence of a viable business model.
Financial Trend: Classified as "FLAT" for Q3 FY26, the trend assessment understates the severity of operational deterioration. Negative revenue, persistent losses, and complete dependence on non-operating income demonstrate a business in crisis rather than stability. Key negative factors include the lowest ROCE of -9.19% in recent history.
Technical Trend: The "BEARISH" technical classification aligns with fundamental weaknesses. The stock trades below all moving averages, has broken key support levels, and shows no signs of bottoming. High volatility (65.68%) combined with negative momentum creates an unfavourable risk-reward profile.
"Jupiter Infomedia epitomises value destruction—a company with negative operating revenue, deteriorating margins, and a business model rendered obsolete by structural industry changes, offering investors only downside risk."
Key Strengths & Risk Factors
KEY STRENGTHS
- Zero debt with net cash position of ₹9.00 crores eliminates financial risk
- No promoter pledging demonstrates some level of promoter confidence
- Stable promoter holding at 70.73% provides governance continuity
- Investments of ₹20.62 crores provide asset backing and liquidity
- Book value of ₹26.02 per share offers some downside protection
- Three-year stock return of 96.77% shows historical recovery capability
- Micro-cap status allows for potential M&A interest
KEY CONCERNS
- Negative revenue of -₹0.05 crores in Q3 FY26 signals business model collapse
- Complete dependence on other income with zero operating earnings sustainability
- Revenue declined 75% YoY in FY25 and turned negative in Q3 FY26
- ROE deteriorated to -6.60% from historical average of 12.84%
- Zero institutional holding reflects lack of professional investor confidence
- Stock underperformed Sensex by 31.15% over past year with high volatility
- Bearish technical trend with stock below all major moving averages
- Mojo Score of 17/100 places stock in "STRONG SELL" category
- Obsolete business model in competitive digital information space
- No dividend payments despite historical profitability
Outlook: What to Watch
POSITIVE CATALYSTS
- Successful business model pivot to subscription or data analytics services
- Strategic partnership or acquisition by larger digital platform
- Return to positive operating revenue for consecutive quarters
- Deployment of investment portfolio into revenue-generating operations
- Entry of institutional investors signalling confidence restoration
RED FLAGS TO MONITOR
- Continued negative or declining revenue in Q4 FY26
- Further deterioration in other income, eliminating last profit source
- Promoter stake reduction or pledging of shares
- Depletion of cash reserves without corresponding business revival
- Regulatory scrutiny or accounting irregularities
- Stock price breach of ₹29.00 support level
The Verdict: Avoid at All Costs
Score: 17/100
For Fresh Investors: Avoid completely. Jupiter Infomedia exhibits all the characteristics of a value trap—negative operating revenue, obsolete business model, and no visible path to profitability. The company functions more as an investment holding entity than an operational business, offering no compelling reason to deploy capital.
For Existing Holders: Exit positions on any price recovery. The Q3 FY26 results confirm operational deterioration rather than temporary setbacks. With a Mojo Score of just 17/100, bearish technical trend, and "RISKY" valuation, the stock offers minimal upside and substantial downside risk. The absence of institutional investors and frozen shareholding pattern suggest limited liquidity for exits.
Fair Value Estimate: ₹26.00 (30% downside from current price of ₹37.19), approximating book value which represents the liquidation floor for this asset-heavy, revenue-light entity.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions.
