Rakesh Jhunjhunwala stock: Brokerage sees 66% upside in this Big Bull's specialty chemical counter

This Rakesh Jhunjhunwala specialty chemical stock can give 66% return in long-term, as per brokerage house Ashika Institutional research. The company has reported a total income of Rs 1304.94 crores during the quarter ended March 31, 2022 against Rs 1295.84 crores during the previous quarter (December 31, 2021). 

Ashika Institutional has maintained a buy rating on Jubilant Ingrevia with a target price of Rs 750 per share. It translates into an upside of 66% on May 23 closing price of Rs 452.05 a share and 71% on the CMP of Rs 438, which the company considered as the record price for estimating the target.  

Though it felt the company put up a weak show due to inventory loss in the March 2022 quarter, however, remained bullish over its multiple growth forays, especially into CDMO space along with ramp-up in Specialty Chemicals and Diketene. It is of the view that the company, however, will have to prove its credentials in newer complex areas such as Agro Actives and Fluorinated derivatives, which will be the key factor to watch out for. 

"We maintain BUY rating on JUBLINGR with an unrevised Target Price of Rs750,"it said in its report.  

Rakesh Jhunjhunwala and Associates holds 7,520,000 shares, aggregating to 4.7% stake, of the specialty chemicals company, as per March 2022 quarter corporate filing.   

Popularly known as Big Bull of the Indian stock market, Rakesh Jhunjhunwala and Associates publicly holds 34 stocks in the quarter ended March 31, 2022, as per latest corporate filings. The value of these stocks has been estimated to be over Rs 29,356.1 crore as on May 24, according to trendlyne.com, a stock market analysis website.  

Earlier on May 17, the company posted net profit of Rs. 68.59 crores for the period ended March 31, 2022 as against net profit of Rs. 129.07 crores for the period ended December 31, 2021. The company has reported total income of Rs. 1304.94 crores during the period ended March 31, 2022 as compared to Rs.686.73 crores during the period ended March 31, 2021. 

Shares of Jubilant Ingrevia ended flat with a marginal loss of 0.37% to Rs 450.40 per share on the BSE on Tuesday. The shares have remained dud with correction of 23% in the past six months as on May 24 closing price. The counter gave a negative return of nearly seven per cent in the past one year as on May 24, showed technical data of the scrip.