This pharma stock was among the top gainers today!

The stock surged 5.3 per cent and closed trading at Rs 407.65.

On December 9, the shares of Jubilant Pharmova Ltd surged 5.3 per cent and closed trading at Rs 407.65. The stock opened at Rs 383.95 and made an intraday high and low of Rs 423.55 and Rs 383.95, respectively.  

Jubilant Pharmova Ltd is an integrated global pharmaceuticals company which operates under three business segments - pharmaceuticals, contract research, and development services & proprietary novel drugs. The company was recently in the news for signing a USD 150 million deal with the US army to boost vaccine manufacturing capacity in the US.  

The company expects to incur capex of around Rs 700-750 crore in FY23 primarily towards expansion in the CMO business and enhancement of drug discovery services capabilities and capacities.  

The company's poor quarterly performance continued. On a year-over-year basis, sales in Q2FY223 were down 3.5 per cent. Also, on a YoY basis, a significant decrease of 96.55 per cent was witnessed in net profit, dropping from Rs 142.64 crore in Q2FY22 to Rs 4.92 crore in Q2FY23. Due to poor demand in the API industry, price constraints, and regulatory uncertainties, the company's performance has been lacklustre in the last few quarters.   

About the shareholding pattern, 50.67 per cent of the company’s stake is owned by the promoters, 23.06 per cent by FIIs, 1.6 per cent by DIIs, and the rest 24.59 per cent by non-institutional investors.     

The company has a market capitalisation of Rs 6493 crore and the stock is trading at 78.87x PE. The scrip has a 52-week high and low at Rs 617 and Rs 305.2, respectively.