Big Bull Rakesh Jhunjhunwala bets big on this pharma stock amid 38% fall in a year

Ace investor Rakesh Jhunjhunwala raised his stake in pharma firm Jubilant Pharmova in the March quarter of last fiscal. Jhunjhunwala held 57.50 lakh shares or 3.61 per cent stake in the firm in last quarter against 50 lakh shares or 3.15 per cent stake in the December quarter of the previous fiscal.

His wife Rekha Jhunjhunwala also held 50.20 lakh shares or 3.15 per cent stake at the end of March quarter. Her stake remained unchanged from the December quarter.

Holdings of promoters of the firm remained unchanged at 50.68 per cent at the end of March quarter compared to the December quarter of last fiscal.

FIIs raised their holdings from 23.18 per cent in the December quarter to 23.45 per cent stake in the March quarter. However, the number of FII investors fell from 156 to 152 in the last quarter. Mutual funds reduced their holdings from 0.39 per cent in the December quarter to 0.05 per cent in the March quarter.

Institutional investors also reduced their holdings from 24.24 per cent in the December quarter to 24.08 per cent in the March quarter.

Meanwhile, Jubilant Pharmova shares have gained after two days of fall.

The stock touched an intraday high of Rs 482.35, rising 4.55 per cent against the previous close of Rs 461.35 on BSE. The pharma stock trades higher than five-day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

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The stock has lost 38.43 per cent in one year and fallen 19.14 per cent in 2022.  At 2:53 pm, the share was trading 2.43 per cent higher at Rs 472.55 on BSE. Total 9,716 shares of the firm changed hands amounting to a turnover of Rs 46.15 lakh on BSE.

Market cap of the firm rose to Rs 7,524.44 crore on BSE. The stock hit a 52-week high of Rs 925 on May 27, 2021 and a 52-week low of Rs 384.85 on March 31, 2022.

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Jubilant Pharmova reported 83.55 per cent fall in net profit at Rs 50.99 crore for the third quarter ended December 31, 2021 against Rs 309.93 crore in the corresponding quarter a year ago.

Sales slipped 26 per cent to Rs 1,310 crore in Q3 of last fiscal against Rs 1,771 crore in the corresponding quarter of the previous fiscal.

However, operating profit excluding other income declined 60.58 per cent to Rs 194.24 crore in the December quarter against Rs 492 crore against Q3 of FY20.

Jubilant Pharmova is an integrated global pharmaceuticals company having three business segments - Pharmaceuticals, Drug Discovery & Development Solutions and Proprietary Novel Drugs.

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