Rakesh Jhunjhunwala increases his stake in this global pharmaceutical company; here's why!
The Big Bull of India - Rakesh Jhunjhunwala has bought a 0.46 per cent additional stake in Jubliant Pharmova Ltd.
Rakesh Jhunjhunwala, one of the most famous investors in India has bought additional shares of Jubliant Pharmova Ltd in Q4 FY22, despite the stock falling more than 30 per cent since he bought the stock. Jhunjhunwala and his wife, Rekha Jhunjhunwala both held a 3.15 per cent stake each in Jubliant Pharmova Ltd as released on the Q3 FY22 quarter ending. However, Jhunjhunwala has increased his stake from 3.15 per cent to 3.61 per cent, holding 57.2 lakh shares of the company as of Q4 FY22 ending period. On the other hand, wife Rekha's stake remained unchanged at 3.15 per cent. Jhunjhunwala family in total now hold 6.76 per cent of Jubliant Pharmova Ltd.
Jubliant Pharmova Ltd is an integrated global pharmaceuticals company having three business segments - pharmaceuticals, contract research, and development services & proprietary novel drugs. This pharmaceutical company belongs to group A and has a market capitalization of Rs 6,379 crore. The company's stock is trading at 79.85x PE and 4.89x PB. The stock has a 52-week high and low at Rs 861 and Rs 378, respectively.
The company continued weak quarterly performance. Q4 FY22 sales were down 3.3 per cent on YOY basis. Also, a significant YOY reduction of 72 per cent in the net profit was observed. The weakness in the company's results for the last few quarters was observed due to slow demand in the API business, price pressures, and regulatory uncertainty. One can get confused by buying from the big bull as the company is continuously delivering weak Quarterly Results. However, Jhunjhunwala is finding company's current negative sentiments as a buying opportunity.
The company was recently in the news regarding the company signing a deal worth USD 150 million with the US army to expand US vaccine manufacturing capacity. At 2:50 pm on June 6, 2022, the stock is trading at Rs 400.5.