1. Rakesh Jhunjhunwala only investor to have increased stake in Lupin despite poor results

Rakesh Jhunjhunwala only investor to have increased stake in Lupin despite poor results

Rakesh Jhunjhunwala continues to remain invested in Lupin Ltd despite a 60% slump in the drugmaker's quarterly earnings.

By: | Updated: August 3, 2017 11:26 AM
Rakesh Jhunjhunwala increased his stake to 1.76% in Lupin Ltd during the Apr-Jun quarter of 2017. (Image: Reuters)

Rakesh Jhunjhunwala has increased his stake in Lupin Ltd to 1.76% despite poor quarterly performance reported by the drug maker. According to the shareholding data filed by Lupin, the ace investor held 1.73% in the previous quarter Jan-Mar 17. The other notable public shareholders, holding more than 1% stake in the company include ICICI Prudential Life Insurance , Government of Singapore and First State Investments ICVC Ltd. Interestingly, ICICI Prudential Life has entered the list of more than 1% shareholding just this quarter, investing a total of 1.4% in the drug maker. Government of Singapore has reduced its stake from 1.77% to 1.42%, a fall of 25 basis points in the quarter. This is not the first time that the ace investor upped his stake in the company. Rakesh Jhunjhunwala held 1.72% at the end of the September-16 quarter, and had increased stake to 1.84% at the end of last year, December- 2016. Apart from Rakesh Jhunjhunwala, Visomed Investment Pvt Ltd and Rahas Investments Pvt Ltd from the promoter and promoter group had increased investments by 0.01% each during the quarter. 

This development comes in even as the results posted by Lupin td. were way below the street expectations. The pharmaceutical company reported a net profit of Rs 358 crore, a drop just shy of 60% as compared to the corresponding period in the previous fiscal. The consolidated revenue plummeted to Rs 3,869 crores a year on year drop of more than 13%. The corresponding revenue in the previous fiscal was Rs 4,468 crores. The company attributed the below par results to higher than anticipated price erosion in select products like Glumetza, disruption on account of GST implementation in India and appreciation in the rupee.

Rakesh Jhunjhunwala had quizzed the management of Lupin ltd. on price erosion and falling margins after the company had reported a near 50% percent year on year decline in the net profit after the previously declared quarterly results in March. The veteran investor had also asked about Lupin’s strategic tie-up with a polish pharmaceutical player, Celon pharma. The stock has had a poor run in the bourses so far, shedding 30% on a year to date basis. The stock was trading at Rs 1,050.60 on NSE.

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