Jubilant Pharmova: RJ buying stake fuel optimism

Jubilant Pharmova: RJ buying stake fuel optimism

Jubilant Pharmova share price surged as much as 2.3% to Rs 636.25 apiece in intraday on BSE, after the ace investor Rakesh Jhunjhunwala picked up a stake in radiopharmaceuticals manufacturer through open market transaction last week.
Rakesh Jhunjhunwala bought 25 lakh shares and wife Rekha Rakesh Jhunjhunwala acquired 20 lakh equity shares of Jubilant Pharmova at Rs 594.35 per equity share. Jhunjhunwala’s firm Rare Enterprises offloaded 40.25 lakh equity shares at the same price, as per the bulk deals data published on the NSE.

As per the shareholding pattern of June 2021, Rakesh Radheshyam Jhunjhunwala and wife held a 6.29% stake in the company. Foreign Portfolio Investors (FPIs) such as East Bridge Capital Master Fund, Government Pension Fund Global and East Bridge Capital Master Fund I held 24.82% stake in Jubilant Pharmova.
Recently, the drug maker reported a consolidated net profit of Rs 160.49 crore from continuing operations for the quarter ended June 30, 2021. The company had posted a net profit of Rs 35.39 crore for the year-ago period.
Revenue from continuing operations stood at Rs 1,634.65 crore in the quarter under review. It was Rs 1,156.07 crore in the same period a year ago.

Contract Research and Development Services business witnessed strong YoY (year-on-year) growth in revenues led by healthy demand from customers.
Jubilant Pharmova board at its meeting held on July 23, 2021, approved the demerger of the active pharmaceutical ingredients (API) undertaking of Jubilant Generics and vesting of the same with Jubilant Pharmova on a going concern basis.

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