Frequently asked questions
Is Jagsonpal Pharmaceuticals a buy at current prices?
DalalBytes rates Jagsonpal Pharmaceuticals Selective Positive at 62/100. The 48-year-old branded formulations maker has compounded operating PAT at about 24% since FY22 to Rs 44.6 crore, holds about Rs 191 crore of cash against effectively no debt, and generated Rs 61.4 crore of free cash flow in FY26. The selective part: revenue compounded at only about 7%, the top 10 brands are about 58% of revenue, and at Rs 217.67 the stock trades at about 32x operating FY26 earnings, so the price already pays for part of the acquisition story.
What are Jagsonpal's FY2029 price targets?
DalalBytes' FY2029 targets for Jagsonpal are bear Rs 150, base Rs 290, and bull Rs 450, from a Rs 217.67 reference price. Bear: 8% revenue CAGR, 13.5% PAT margin, 20x exit. Base: 13% CAGR, 16.0% margin, 28x exit, EPS about Rs 10.3. Bull: 17% CAGR, 18.0% margin, 35x exit. FY2029 is the year ending March 2029.
What did Jagsonpal acquire in 2026?
Jagsonpal acquired 85% of Aequitas Healthcare in July 2026 for Rs 20.8 crore in cash, entering the hospital channel with a business that had FY26 revenue of Rs 53.3 crore and a management target of Rs 10 crore of EBITDA by Year 2. It then closed the acquisition of Group Pharmaceuticals' wellness portfolio on October 1, 2026, for Rs 23.7 crore upfront and up to Rs 46.7 crore in total, with the balance linked to FY2027-28 sales. The portfolio had FY26 turnover of Rs 24.6 crore and includes the Hemozink and Sudin brands.
What is the verdict on Jagsonpal?
The business underneath is better than the growth rate on the label. Operating EBITDA compounded at about 25% from FY22 to Rs 60.9 crore in FY26 and operating PAT at about 24% to Rs 44.6 crore, while revenue compounded at about 7% to Rs 287.2 crore. Free cash flow rose about eightfold to Rs 61.4 crore and the balance sheet holds about Rs 190.7 crore of cash against effectively no debt. Three acquisitions in 28 months (Yash Pharma, Aequitas, Group Pharma wellness) are now the growth thesis, each small, cash-funded and structured with the seller keeping skin in the game. At about 32x operating earnings with the top 10 brands at about 58% of revenue, the rating is Selective Positive at 62/100.
How did Jagsonpal start, and who owns it now?
Rajpal Singh Kochhar promoted Jagsonpal in 1978 as a brands-and-distribution company with outsourced manufacturing, building Maintane and Indocap into fixtures of gynaecology and pain care over four decades. In 2022 Infinity Holdings, a Convergent Finance affiliate led by Harsha Raghavan, acquired a controlling stake and became joint promoter with the Kochhar family. The promoter group held 68.82% in September 2026 with pledging at 0.00%, and the holding has been stable to rising since, helped by a Rs 40 crore buyback at Rs 250 a share in May 2026 in which promoters did not tender.
What does Jagsonpal sell?
Branded formulations in four therapy blocks. Gynaecology is about 50 to 55% of revenue (Divatrone, Maintane, Endoreg, MemUp), sold to obstetricians, gynaecologists and IVF specialists, with coverage of about 35,000 of India's 39,000 gynaecologists. Orthopaedics and pain are about 20 to 25% (Indocap, the first brand past Rs 50 crore, and Metadec). Dermatology (about 10 to 15%) and paediatrics (about 12%) came with the Yash Pharma portfolio of 33 brands in May 2024. Manufacturing and much R and D are outsourced, so the real fixed asset is a field force of about 1,000 medical representatives.
What do the three acquisitions show?
A consistent template: buy brands or channels, not factories, pay cash, and share integration risk. Yash Pharma's India and Bhutan business cost Rs 92.47 crore in May 2024 and its EBITDA margin has reportedly been lifted from about 10% to about 22%. Aequitas cost Rs 20.8 crore for 85% in July 2026, with sellers keeping 15% and a target of Rs 10 crore of EBITDA by Year 2. The Group Pharma wellness portfolio closed on October 1, 2026 at Rs 23.7 crore upfront and up to Rs 46.7 crore total, the balance linked to FY28 sales. Together the deals underwrite management's Rs 500 crore revenue ambition; integration bandwidth is the risk.
What do the financials show?
Revenue of Rs 217.6 crore in FY22 rising to Rs 287.2 crore in FY26, with operating EBITDA of Rs 25.0 crore rising to Rs 60.9 crore (margin 11.5% to 21.2%) and operating PAT of Rs 18.9 crore rising to Rs 44.6 crore. Reported PAT differs from operating PAT in both directions (Rs 55.4 crore in FY25 including other income, Rs 43.1 crore in FY26 after a labour code charge), so the operating line is the cleaner trend. Secondary growth ran ahead of the market (12.2% versus 8.6% in FY26), Q1 FY27 revenue grew 8.8% with operating EBITDA up about 21% and PAT up 22%, and free cash flow reached Rs 61.4 crore in FY26.
Who runs Jagsonpal, and is governance clean?
Harsha Raghavan chairs, Manish Gupta is Managing Director, and the promoter group (Infinity Holdings plus the Kochhar family) holds 68.82% with zero pledging across the record: 69.17% in FY21, a dip to 67.39% by December 2025, then 69.06% by June 2026 after the buyback. Disclosure has professionalised under PE ownership, with investor presentations reconciling operating and reported profit. Watch items: a PE promoter has an eventual exit horizon, ESOP allotments add a small dilution drip, an appealed tax demand sits in the file, and institutional sponsorship is still thin at about 2.1% FII and 1.6% DII.
What is Jagsonpal worth?
At Rs 217.67: market cap about Rs 1,436 crore, about 5.0x FY26 sales, about 32x operating FY26 EPS of about Rs 6.8 and about 34x reported EPS of Rs 6.40, P/B about 5.0x, dividend yield about 1.8%. The sector trades at about 49x and Torrent at about 65x, so Jagsonpal carries a clear small-cap discount, balanced against the slowest top line in the branded set. FY2029 scenarios from FY26 revenue of Rs 287 crore: bear Rs 150 (8% CAGR, 13.5% margin, 20x), base Rs 290 (13% CAGR, 16.0% margin, 28x, EPS about Rs 10.3), bull Rs 450 (17% CAGR, 18.0% margin, 35x).
What are the key risks?
Concentration first: gynaecology is about half of revenue and the top 10 brands about 58%, so one brand, one safety signal or one price-control order moves the whole P and L. Counterfeiting second: fake Divatrone and Indocap product took volume in FY25 and the moat is prescriber habit, not patents. Then integration (Aequitas must go from negligible EBITDA to Rs 10 crore in two years), outsourced manufacturing and R and D dependence, an eventual PE promoter exit, thin liquidity, and a valuation at about 32x operating earnings that de-rates toward the bear case if a year passes with single-digit growth and no deal delivery.
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