This Jhunjhunwala stock rose 100% in seven months, did you miss the rally?

Lupin share has doubled investor wealth in last seven months. The stock which is part of ace investor Rakesh Jhunjhunwala's portfolio fell to its 52-week ...

Lupin share has doubled investor wealth in last seven months. The stock which is part of ace investor Rakesh Jhunjhunwala’s portfolio fell to its 52-week low of Rs 505 on March 13 this year. The pharma stock has gained 105% since then. The stock was trading at  Rs 1037 on BSE today. Jhunjhunwala held 69.45 lakh shares or 1.53% stake in Lupin at the end of September quarter.

Jhunjhunwala increased stake in the company to 1.53 percent in Q2 from 1.47 percent in June quarter. LIC also raised stake to 3.71 percent from 2.7 percent and MFs to 12.58 percent from 11.94 percent.

Lupin stock has outperformed its peers in terms of returns in seven months. Against Lupin’s 105% rise, shares of pharma firms such as Sun Pharma (40%), Dr Reddy’s Labs (77.25%), Divi’s Labs (60%) and Bicon (55%) could log double-digit returns during the period.

The rise in Lupin stock can be attributed to the financial performance of the firm and launch of coronavirus drug Favipiravir in India.

In Q4 of last fiscal, the firm reported a 34.55 per cent rise in its consolidated net profit to Rs 389.63 crore on account of robust sales in the domestic market and lower tax expenses. Lupin had posted a net profit of Rs 289.56 crore in the corresponding period of previous fiscal. Its earnings managed to stay in positive zone despite Covid-19 affecting the firm’s business during the period.

Jhunjhunwala earned Rs 5.6 crore per day with this stock for 111 sessions

“We closed the year with strong growth across all our key markets and significant strengthening of our profitability and balance sheet. We have had strong momentum in our two major markets, the US and India, and on compliance across our facilities,” Lupin MD Nilesh Gupta said during the release of Q4 earnings.

However, Q1 earnings of the firm could not remain insulated from Covid 19-led global slowdown. Lupin reported a 64.72 per cent decline in its consolidated net profit to Rs 106.90 crore in Q1 hit by the COVID-19 pandemic. The company had posted a net profit of Rs 303.05 crore for the corresponding period of the previous fiscal.

Jhunjhunwala sees a fresh bull market despite pandemic effect; bets big on realty, infra, IT sectors

On August 5, Lupin launched coronavirus drug Favipiravir in India. The drug was launched under the brand name ‘Covihalt’ for the treatment patients with mild to moderate COVID-19 symptoms at Rs 49 per tablet. Stock price of Lupin on August 5 stood at Rs 940 on BSE. The stock has risen 10.3% till date.

In today’s trade, Lupin share fell 3.22% intraday to Rs 1,022 against the last close of Rs 1,056. Later, the stock ended 1.37% lower at Rs 1037 on BSE. The stock has fallen after 2 days of consecutive gain. Lupin share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Lupin share has gained 45% during last one year and gained 35.7% since the beginning of this year. Total 1.27 lakh shares changed hands on BSE amounting to turnover of Rs 13.14 crore.  Market cap of the firm fell to Rs 47,044 crore.

Rakesh Jhunjhunwala earned Rs 2.71 crore per day with this stock for 100 sessions

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COVID-19 | India

October 24, 2020 7:28 pm

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