This stock held by Jhunjhunwala tripled investor wealth in three years

Rakesh Jhunjhunwala-held Bilcare share has delivered over 200% returns to investors in three years. The ace investor and his wife held 19.97 lakh shares in the pharmaceutical packaging research solutions firm for the quarter ended December 2021. While Jhunjhunwala owned 17.35 lakh shares in the firm, his wife Rekha Jhunjhunwala held 2.62 lakh shares during the period.

Bilcare share has gained 11.7% since the beginning of this year and risen 65.13% in one year. In a month, the stock has climbed 25.91%. The stock closed at Rs 97.65 on January 25, delivering more than thrice the returns in three years. The share ended at Rs 30 on January 25, 2019.

The rise in stock can be attributed to the improvement in financial performance of the firm.

 In Q2 of the current fiscal, the firm reported a 766% rise in net profit to Rs 22.40 crore against Rs 3.36 crore loss in quarter ended September 2020.

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Net sales climbed 34.21% to Rs 203.53 crore in Q2 against sales of Rs 151.65 crore in the second quarter of previous fiscal.

Operating profit excluding other income rose 49.72% to Rs 15.81 crore in Q2 against Rs 10.56 crore in the corresponding quarter of previous fiscal. On a quarter on quarter basis, net profit rose 246% from Rs 15.28 crore loss for the June quarter.

Sales grew 14.52% from Rs 177.73 crore in the June quarter of current fiscal.

However, in the last fiscal, net sales fell 66% to Rs 622 crore against Rs 1,827 crore sales in the March 2020 fiscal. Net loss shrinked by 79.65% to Rs 21.07 crore in March 2021 fiscal against a loss of Rs 103 crore for the fiscal ended March 2020.

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Share price of its peer Jindal Poly Films has gained 321% in three years and risen 140% in one year. On an year-to-date basis, the Jindal Poly Films stock has risen 1.52%.

Stock price of another competitor Cosmo Films has gained 857% in three years, 395% in five years and 314% in one year. The share has risen 2% in a week, 29.67% in one month, and 31% since the beginning of this year.

The stock was trading 3.74% lower at Rs 94 in afternoon session today. Market cap of Bilcare fell to Rs 221.33 crore on BSE. The stock touched an intraday low of Rs 93, down 4.76% on BSE.

It trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

Bilcare Limited is engaged in offering pharmaceutical packaging research solutions. The company's portfolio of products and services include articles of plastics and polymer; aluminium and aluminium products, and global clinical services. The company's manufacturing plant is located at Pune. It has operations in India, Singapore, Germany and the US.

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