As per the June 2021 shareholding pattern, Rakesh Jhunjhunwala and his wife held 6.29 per cent stake in Jubilant Farmova.
Jhunjhunwala Portfolio: Veteran investor Rakesh Jhunjhunwala and his wife had last week bought stake in radiopharma manufacturer Jubilant Farmova through the open market. Since then, its shares have strengthened 5.13 per cent on BSE in the last five trading days and today its shares have gained 2.3 per cent in intraday. Rakesh Jhunjhunwala bought 25 lakh shares and his wife Rekha Jhunjhunwala bought 20 lakh shares at Rs 594.35 per equity share.
At the same time, according to the bulk deals data published on NSE, Jhunjhunwala’s company Rare Enterprises sold 40.25 lakh equity shares at the same price. According to the shareholding pattern of June 2021, Rakesh Jhunjhunwala and his wife held 6.29 per cent stake in this company. Experts believe that investors can earn up to 34 percent profit in this.
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Golden chance of 34% profit
Domestic research and brokerage firm ICICI Direct Research has set a target price of Rs 850 for this stock, which means that investors can make a profit of 34 percent. At present it is at a price of around Rs 634. The stock price of Jubilant Farmova has grown by 2.3x in the last five years, despite the demerger of life science ingredient Jubilant Ingravia, according to a July report by the research firm. In June 2016 its price was Rs 314 per share and in June 2021 its price reached Rs 732. The brokerage firm has given a ‘buy’ rating to the stock despite regulatory concerns. Jubilant Pharmaova comprises the therapeutics business of Jubilant Pharma, Biosys and Jubilant Life Sciences.
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3600 crore order for the company for the next three years
Jubilant Farmova has entered into contract manufacturing deals for COVID-treatment and vaccine, which will increase its profits. Earlier in the last quarter, the company’s revenue in the CDMO (Contract Development and Manufacturing Organization) segment has increased by 48 percent to Rs 574 crore on a year-on-year basis. However, the overall revenue growth of the company remained almost flat in the last financial year. Jubilant Farmova reported a 23.5 per cent year-on-year decline in revenue in the radiopharma segment.
According to the company’s management, there was a reduction in diagnostic testing due to the corona epidemic, due to which the revenue declined. Although the company’s allergy business has reached the level before the corona. The company’s net profit declined by 13.7 per cent to Rs 183 crore. The company’s performance in the last quarter was affected due to the decline in the radiopharma segment, but the management expects a recovery in this financial year 2021-22 due to a new launch. Jubilant Farmova says that in the CDMO segment, the company has received orders worth up to Rs 3600 crore for the next three years.
(Article: Surbhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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