The stock of Jubilant Ingrevia, a company invested by Big Bull Rakesh Jhunjhunwala, gained over 5% on Wednesday, a day after the December quarter results were announced.
Rakesh Jhunjhunwala Portfolio: The stock of Big Bull Rakesh Jhunjhunwala’s investment firm Jubilant Ingrevia gained over 5% on Wednesday, a day after the December quarter results were declared. Shares of specialty chemicals manufacturer Jubilant Ingravia in intraday Rs 612 per cent. Came to share level. The company has registered a growth of 41.9% in Net Profit and 44% in Income as compared to the previous year. The board of the company has also announced an interim dividend of Rs 2.5 per share for the investors. Big Bull Rakesh Jhunjhunwala holds 4.72% stake in the company.
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Company’s quarterly results
- Total revenue from operations – Rs 1,286 crore
- Total expenditure – Rs 1,109 crore
- Net profit – Rs 129 crore
- EBITDA Margin – 17.3%
- The company’s income has grown by 44 per cent year-on-year.
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Experts opinion
Jubilant Ingravia’s quarterly performance was below the estimates of brokerage firm Edelweiss. Edelweiss said in its note, “Jubilant Ingravia (JIL) Q3FY22 results have come in lower than our estimates. This is mainly due to margin pressure in the commodity segment.” However, brokerage firms are still bullish on the stock. The brokerage believes that the successful execution of Capex plans in the value added segment will play a key role in doubling the revenue base of Jubilant Ingravia.
Analysts at Edelweiss said that Jubilant Ingravia will benefit from the ‘China plus one’ strategy. The brokerage firm has given ‘Buy’ rating to this stock with a target of Rs 1,006 per share. The company’s stock is expected to rise 64 per cent to reach the target price.
Rakesh Jhunjhunwala’s stake
Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala held 75.2 lakh equity shares of Jubilant Ingravia at the end of October-December quarter. The value of Rakesh Jhunjhunwala’s stake in the company is at an all-time high of Rs 460.22 crore. Big Bull had reduced its stake by 0.8% in the third quarter of the financial year.
(Article: Kshitij Bhargava)
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