Jubilant Ingrevia Ltd Valuation Shifts to Fair Amid Mixed Market Performance

Valuation Metrics and Recent Changes

As of 10 Feb 2026, Jubilant Ingrevia’s P/E ratio stands at 38.46, a figure that has contributed to the company’s valuation grade being downgraded from attractive to fair. This P/E multiple is notably higher than the industry average, signalling that investors are currently paying a premium for the company’s earnings compared to its historical valuation range. The price-to-book value has also risen to 3.48, reinforcing the shift in market sentiment towards a more cautious stance on the stock’s price attractiveness.

Other valuation multiples such as EV to EBIT (29.47) and EV to EBITDA (20.57) remain elevated but within a range consistent with a fair valuation. The PEG ratio, which adjusts the P/E for earnings growth, is at 1.16, suggesting that while the stock is not excessively overvalued, the premium is justified only if growth prospects materialise as expected.

Comparative Analysis with Peers

When compared with its sector peers, Jubilant Ingrevia’s valuation appears more moderate. For instance, Ajanta Pharma and Gland Pharma are classified as expensive and very expensive respectively, with P/E ratios of 35.14 and 35.92 but higher EV to EBIT multiples, indicating stronger market confidence in their earnings quality or growth potential. J B Chemicals & Pharmaceuticals and Astrazeneca Pharma, with P/E ratios of 40.12 and 93.33 respectively, are considered very expensive, underscoring Jubilant Ingrevia’s relatively fair standing despite the recent downgrade.

In contrast, companies like Piramal Pharma, which is currently loss-making, and Emcure Pharma with a P/E of 32.3, are also rated expensive or fair, highlighting the diverse valuation landscape within the specialty chemicals sector. This context is crucial for investors seeking to balance risk and reward across the industry.

Stock Price Performance and Market Context

Jubilant Ingrevia’s current market price is ₹663.65, up 8.02% on the day from a previous close of ₹614.35. The stock has traded between ₹612.25 and ₹672.90 today, with a 52-week range of ₹556.55 to ₹851.85. Despite the recent uptick, the stock’s year-to-date return remains negative at -5.73%, underperforming the Sensex’s -1.36% over the same period. Over the one-year horizon, the stock has declined by 9.68%, contrasting with the Sensex’s robust 7.97% gain.

However, the longer-term performance is more encouraging, with a three-year return of 40.41%, slightly outperforming the Sensex’s 38.25%. This suggests that while short-term volatility and valuation concerns persist, Jubilant Ingrevia has delivered solid returns over a multi-year timeframe.

Financial Quality and Return Metrics

Jubilant Ingrevia’s return on capital employed (ROCE) is 10.56%, while return on equity (ROE) stands at 9.47%. These figures indicate moderate efficiency in generating returns from capital and shareholder equity, though they are not particularly high compared to some peers in the specialty chemicals sector. The dividend yield is modest at 0.38%, reflecting a conservative payout policy consistent with reinvestment in growth initiatives.

The company’s enterprise value to capital employed ratio of 2.98 and EV to sales of 2.66 further illustrate a valuation that is fair but not cheap, signalling that investors are factoring in steady but unspectacular growth prospects.

Market Sentiment and Rating Changes

MarketsMOJO has recently downgraded Jubilant Ingrevia’s mojo grade from Sell to Strong Sell as of 5 Feb 2026, with a current mojo score of 28.0. This reflects a more cautious outlook driven primarily by valuation concerns and relative underperformance against broader market indices. The market cap grade remains low at 3, indicating limited scale or liquidity advantages.

Despite the downgrade, the stock’s daily price change of +8.02% suggests some short-term buying interest, possibly driven by technical factors or sector rotation. Investors should weigh these dynamics carefully against the fundamental valuation shifts and peer comparisons.

Investment Implications and Outlook

Jubilant Ingrevia’s transition from an attractive to a fair valuation grade signals a more tempered market enthusiasm. Investors should consider that the elevated P/E and P/BV ratios imply expectations of sustained earnings growth, which may be challenged by sector cyclicality or competitive pressures. The company’s moderate returns on capital and equity, combined with a low dividend yield, suggest that capital appreciation remains the primary driver of investment returns.

Comparisons with peers reveal that while Jubilant Ingrevia is not the most expensive stock in the specialty chemicals space, it is no longer a clear bargain. Stocks such as Ajanta Pharma and Gland Pharma command higher premiums, justified by stronger growth or market positioning, whereas others like Piramal Pharma face profitability challenges.

Given the recent mojo downgrade and valuation shift, investors should carefully assess whether Jubilant Ingrevia fits their risk-return profile, especially in light of alternative opportunities within the sector and broader market. The stock’s recent price volatility and underperformance relative to the Sensex over one year further underscore the need for a cautious approach.

In summary, Jubilant Ingrevia remains a significant player in the specialty chemicals industry with solid long-term returns, but its current valuation demands rigorous scrutiny. Investors seeking exposure to this sector may benefit from a diversified approach, balancing Jubilant Ingrevia’s fair valuation against more attractively priced or fundamentally stronger peers.

Unlock special upgrade rates for a limited period. Start Saving Now →