Rakesh Jhunjhunwala Raises Stake in This Pharma Stock Even As It Sees 38% Dip in a Year

Star investor Rakesh Jhunjhunwala has increased his stake in the pharmaceutical company Jubilant Pharma. According to the latest stock pattern, the billionaire investor, as of March 31, 2022, owns 57.5 lakh shares of the Jubilant Group company, or a 3.61 percent stake in the company, compared to 50 lakh shares or 3.14 per cent stake in the company. investor, as of December 31, 2021. This indicates that Jhunjhunwala has picked up an additional 7.5 lakh shares of the company in the last quarter of FY22.

Meanwhile, Jhunjhunwala’s wife Rekha Jhunjhunwala continued her 3.15 per cent stake in the company or 50.2 lakh shares in the quarter ending March. She also had the same thing in the December 2021 quarter.

However, the company’s promoters’ holdings were unchanged at 50.68 percent at the end of the March quarter compared to the December quarter of the last fiscal year.

Meanwhile, Jubilant Pharmova shares have gained after two days of decline. The stock hit an intraday high of Rs 482.35, rising 4.55 percent from the previous close of Rs 461.35 on BSE. Pharmaceutical stocks are trading above the 5-, 20-, and 50-day moving averages, but below the 100- and 200-day moving averages.

The stock lost 38.43% in a year and is down 19.14% in 2022. As of 2:07 pm, the stock was trading 2.83% higher at Rs 475.35 on BSE. A total of 9,716 shares of the company changed hands, resulting in a turnover of Rs 46.15 lakh in EEB.

The company’s market capitalization rose to Rs 7,524.44 crore on BSE. The stock reached a 52-week high of Rs 925 on May 27, 2021, and a 52-week low of Rs 384.85 on March 31, 2022.

Jubilant Pharma, in upcoming quarterly results, is expected to post a sharp decline in revenue from covid products compared to the prior-year period, analysts at Nirmal Bang said. “CDMO business may also decline as a large portion of the Covid drug order book has been executed. The Radiofarma business is also expected to deliver moderate performance as the business has yet to recover from Covid. The adverse impact of the restricted import alert at its Roorkee formulations plant should result in a decline in generic sales,” they added. The generic and speciality pharmaceutical businesses may experience some growth sequentially.

Similarly, analysts at Motilal Oswal have forecast a near 22% year-over-year drop in revenue due to a decline across all businesses. Analysts said they are keeping an eye on prospects for Ruby-fill’s expansion plans, Radiofarmacia’s turnaround and prices for KSM imported from China.