Rekha Jhunjhunwala bought fresh stake in this pharma stock in Q4: Should you buy?

As per the shareholding pattern available on the stock exchanges, Rekha Jhunjhunwala acquired a fresh stake of 1.9% or held 6,292,134 shares worth ₹122.3 Cr in Sun Pharma Advanced Research. In addition to Sun Pharma Advanced Research, Rekha Jhunjhunwala has also bought a fresh stake of 5.2% or 600,000 shares worth ₹53.2 Cr in Raghav Productivity Enhancers Ltd during Q4FY23. Rekha Jhunjhunwala publicly owns 29 stocks with a net value of more than Rs. 28,437.6 Cr., according to the latest corporate shareholdings available on the exchanges.

During the quarter ended December 2022, the company recorded a net income of ₹131.12 Cr as against ₹62.49 Cr during the quarter ended December 2021. The company said its net expenses stood at ₹118.04 Cr compared to ₹76 Cr and its EBIT reached ₹13.08 Cr during Q3FY23 as against ₹(-13.51) Cr during Q3FY22. The net profit of Sun Pharma Advanced Research reached ₹10.15 Cr compared to a net loss of ₹15.84 Cr during the same quarter of FY22 and its EPS stood at ₹0.37 during Q3FY23 as against ₹(-0.60) during Q3FY22. The company is yet to declare its Q4 result.

On Friday, the shares of Sun Pharma Advanced Research Company closed on the NSE at ₹193.60 apiece level, down by 0.62% from the previous close of ₹194.80.  The stock touched a 52-week-high of ₹284.40 on (21-Apr-2022) and a 52-week-low of ₹162.10 on (21-Mar-2023). During Q4FY23, the company recorded a promoter shareholding of 65.68%, FIIs stake of 3.64%, DIIs stake of 0.63% and a public stake of 30.04%.

Commenting on the technical outlook of the stock, Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform said “The Sparc stock has been in a strong downtrend for the last one year and has started bouncing recently from a strong support level around 170. From a technical perspective, the stock has already made a bottom and it is unlikely that this bottom will be broken again in the near term. Once the stock crosses the 225 mark, it would have crossed all its important moving averages and its trend would change completely to the upside. Another reason why the 225 level is important for the stock is because, currently the stock has formed only one higher high, we need a full circle to be completed where it forms a full higher high and higher low and then another high to ensure that this is not a short term technical bounce only or a unsustainable bounce.”