Rakesh Jhunjhunwala-owned Jubilant Ingrevia stock rallied more than 5% on Wednesday, a day after the company declared its October-December quarter results. Jubilant Ingrevia, a specialty chemicals manufacturer, saw its share price soar to hit an intraday high of Rs 612 per share. The company reported a 41.9% on-year growth in net profit and a 44% growth in earnings from the previous year. The board of the company also declared an interim dividend of Rs 2.5 per share for investors. Big bull Rakesh Jhunjhunwala owns a 4.72% stake in the company.

Result highlights

  • Total revenue from operations – Rs 1,286 crore
  • Total expenses – Rs 1,109 crore
  • Net profit – Rs  129 crore
  • EBITDA Margin – 17.3%
  • Revenue grew by 44% on an on-year basis, driven by growth across product segments.
  • PAT grew by 42% on-year driven by growth in EBITDA, added by a reduction in finance cost through reduction in Gross debt and optimization of Interest rates.  

Analysts say buy

Jubilant Ingrevia’s quarterly performance was below estimates pegged by Edelweiss. “Jubilant Ingrevia’s (JIL) Q3FY22 results came in below our estimates, primarily on account of margin pressure in the commodity segment,” Edelweiss said in a note. However, the brokerage firm remains bullish on the stock, believing that successful execution of the Capex plans in the value-added segment will remain instrumental in Jubilant Ingrevia’s growth ambition of doubling revenue base. 

Analysts at Edelweiss said that Jubilant Ingrevia is well placed to benefit from the ‘China Plus One’ strategy.“The stock offers an attractive opportunity with valuation comfort at current levels. Maintain ‘BUY’ with a target price of Rs 1,006 per share,” they said. The target price implies 64% upside potential from today’s high.

Rakesh Jhunjhunwala’s stake

Big bull Rakesh Jhunjhunwala owned 75.2 lakh equity shares of Jubilant Ingrevia, along with his wife Rekha Jhunjhunwala, at the end of the October-December quarter. The value of Rakesh Jhunjhunwala’s stake in the company at today’s high stands at Rs 460.22 crore. The ace investor had trimmed his stake by 0.8% in the fiscal third quarter. Jubilant Ingrevia’s dividend announcement will help Rakesh Jhunjhuwala pocket Rs 1.88 crore.