Ace Investor: Rakesh Jhunjhunwala is increasing his investment in this multinational pharmaceutical company!

Rakesh Jhunjhunwala, India's Big Bull, has increased his investment in Jubilant Pharmova Ltd by 0.46% in Q4FY22.

Despite the stock plunging more than 30% after he bought it, Rakesh Jhunjhunwala, one of India's most well-known investors, purchased further shares of Jubilant Pharmova Ltd in Q4 FY22. As of the end of the third fiscal quarter of FY22, Jhunjhunwala and his wife, Rekha Jhunjhunwala, each held a 3.15% ownership in Jubilant Pharmova Ltd. Jhunjhunwala, on the other hand, has raised his stake in the firm from 3.15% to 3.61%, holding 57.2 lakh shares as of the end of Q4 FY22. Rekha's stake, on the other hand, remained steady at 3.15%. The Jhunjhunwala family currently owns 6.76% of Jubilant Pharmova Ltd.

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 belongs to BSE’s group ‘A’ and has a market capitalization of Rs 6,047 crore. The company's stock is trading at 78.24x PE and 4.79x PB. The stock has a 52-week high and low at Rs 861 and Rs 378, respectively.

The company's poor quarterly performance persisted. On a year-over-year basis, sales in the fourth quarter of FY22 were down 3.3%. In addition, there was a large YOY decrease in net profit of 72%. Due to poor demand in the API industry, price constraints, and regulatory uncertainties, the company's performance has been lacklustre in recent quarters. Buying from Rakesh Jhunjhunwala can be puzzling to many because the company consistently produces poor quarterly results. Jhunjhunwala, on the other hand, sees the company's current unfavourable sentiment as a purchasing opportunity.

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 stock is trading at Rs 379.65 at 2:36 p.m. on June 10, 2022.