Rakesh Jhunjhunwala-owned drug stock hits new 52-week high; charts show it may rally up to 20% more

By: |
June 02, 2021 2:17 PM

Rakesh Jhunjhunwala-owned Lupin share price surged as high as 4.7 per cent to Rs 1,266.35 apiece in intraday deals on BSE, in an otherwise weak market.

Lupin share price surged as high as 4.7 per cent to Rs 1,266.35 apiece in intraday deals on BSE, in an otherwise weak market. This Rakesh Jhunjhunwala-owned drug stock has surpassed its previous high of Rs 1,246.30 apiece hit on May 11, 2021. Lupin stock price hit a 52-week low of Rs 828.65 apiece last year in July, since then stock has soared 53 per cent. Technical charts signal that this pharma company may rise up to 20 per cent more in the near term. “Lupin is in poll-flag formation which indicates a strong upside move,” said an analyst. “The breakout is seen near 1,226 levels and poll height is 160 points. So, it is expected to test 1,380 levels soon. One should keep stop loss below Rs 1,200,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.

As of March 31, 2021, ace investor Rakesh Jhunjhunwala held 72.45 lakh shares or 1.60 per cent stake in Lupin In traded volume terms, so far around 2.83 lakh shares have traded on BSE, while a total of 52.91 lakh shares exchanged hands on NSE.

On June 2, 2021, the stock witnessed breakout from a continuation pattern-Pennant and hit a new 52-week high. “Above average volume and positively poised technical indicators signal that prevailing up-trend will continue. This could take the stock towards Rs1,425 initially and Rs1,500 subsequently,” Jatin Gohil, Technical Analyst at Reliance Securities, told Financial Express Online.

Lupin stock witnessed breakout from a continuation pattern-Pennant. Image: Reliance Research

At the end of Jan-Mar quarter of FY21, mutual funds held 13.05 per cent stake or 5.92 crore shares of this pharma company. While foreign portfolio investors (FPIs) held 17.87 per cent stake or 8.10 crore shares. Promoters stake stood at 46.58 per cent. Lupin reported a growth of 18.2 per cent on-year in net profit to Rs 460.4 crore in the January-March quarter of FY21. The company reported a net profit of Rs 390 crore during the corresponding period of the previous year. Revenues of Lupin fell by 1.6 per cent on-year to Rs 3,783 crore, as compared to Rs 3845.7 crore year-ago.

Earlier, last week, Lupin had announced the achievement of key milestones for Lupin’s MEK inhibitor compound (LNP3794) that is planned for development by Boehringer Ingelheim in combination as potential targeted therapy for patients with difficult-to-treat cancers. As part of the agreement, Lupin has received payment of $50 million from Boehringer Ingelheim for the achievement of key milestones.

The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bitcoin is a bubble for now over 80% fund managers globally despite price pullback: Bank of America survey
2Sebi issues new guidelines for running account settlement
3Sensex, Nifty snap 3-day record closing spree ahead of FOMC outcome; what analysts’ make of today’s trade