Rakesh Jhunjhunwala cuts its stake in Lupine; stock remains under pressure, loses more than 4% so far this year


Previously, Rakesh Jhunjhunwala held 1.6% of the capital or 72.45 lakh shares of Lupine

Rakesh Jhunjhunwala reduced his stake in pharmaceutical major Lupine to less than 1%. Previously, Rakesh Jhunjhunwala held a 1.6% or 72.45 lakh stake in Lupine, as of June 30, 2021. However, Rakesh Jhunjhunwala’s name did not appear in the list released by the company earlier this week according to the last shareholding file. Companies do not need to report the names of shareholders who hold less than one percent of the company’s capital. Trendlyne shows that Rakesh Jhunjhunwala’s stake in Lupine is “less than 1%” as of September 30, 2021.

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Lupine share performance

Lupine’s stock price fell more than half a percent to Rs 958 against BSE, even as BSE Sensex jumped 0.7%, hitting a new high. The stock is down half a percent in the past five days and down 2.4 percent in the last month. While, since the start of the year (YTD), Lupine shares have lost 4.14% and 8.6% in six months. Analysts say the pharmaceutical sector as a whole is on a positive note, but Lupin’s low ROE has not benefited investors at all.

The operational performance of the company also remained weaker. “However, the outlook for Lupine appears stable given the continued healthy growth of the Indian pharmaceutical sector and the gradual increase in sales in the United States which could improve its margins. Investors may hold the stock for the purpose of 980 in the medium term, ”Ravi Singh, vice president – head of research, Share India Securities, told The Bharat Express News Online.

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Despite a rally in the Indian stock market as a whole, Lupine shares reigned under pressure. Analysts said the exit of the leading investor with little interest in defensive sectors like pharmaceuticals led Lupine stock to remain under pressure despite a strong global bull market. “Technically, Rs 980 remains strong resistance and until there is no close above this level, Rs 920-930 could be reached in the next few sessions,” said AR Ramachandran, co-founder and trainer, Tips2Trades, at The Bharat Express News Online.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. The Bharat Express News Online assumes no responsibility for their investment advice. Investments in the capital markets are subject to rules and regulations Please consult your investment advisor before investing.)

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