Big Bull held less in this favorite stock, what to do if you have it? sell or stay
Big bull JhunJhunwala reduces holding in Lupin, Should you Hold or Exit
Rakesh Jhunjhunwala is quite bullish about his shares, but sometimes he keeps reducing his stake under his simple strategy. The shares of the pharma sector company Lupin are also included in them. Jhunjhunwala had 1.6 percent stake in this company. He had 72.45 lakh shares of the company. But now he has reduced his stake in it to less than one percent.
So far this year, this stock has decreased by more than four percent
Lupin’s shares are currently trading at Rs 949, while the BSE Sensex is at its new peak. The stock has fallen half a percent in the last five days. It has fallen by 2.4 per cent in the last one month. It has declined by 4.14 per cent since the beginning of this year. Analysts say that brokerage houses are positive about the pharma sector, but investors are hurting due to the declining ROE of Lupine. The operating performance of the company has also been weak.
What is the opinion of experts?
According to Lupin, Vice President and Research Head, Share India Securities, Ravi Singh said that the company’s outlook looks stable due to the good growth of the pharma sector. The growth of the pharma sector in India is good and its margins may increase due to the increasing sales of drugs in the US. So investors can hold it in the medium term with a target of Rs 980.
However, Tips2Trades co-founder and trainer AR Ramachandran says that despite the rally in the stock market, high-profile investors are exiting Lupine’s stock. His interest in defensive sector stocks like pharma is waning. Because of this, despite a strong bull market, Lupine shares remain under pressure. He says that there is a strong resistance in the stock at Rs 980 technically. Since no closing is visible from here, so it can remain at Rs 920-930 in the coming trading session.
(Article : Surabhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)