Rakesh Jhunjhunwala stocks: Lupin shares trade near 52-week low as Q3FY22 results disappoint street; scrips down 5% intraday

Rakesh Jhunjhunwala-backed Lupin Limited's shares slipped almost 5 per cent to Rs 859 on the BSE in the intraday trade on Friday, after the pharma major reported lower than expected margins and net profit for its third quarter results of the financial year 2021-22 (Q3FY22).  

The stock is trading near its 52-week low of Rs 854 per share on the BSE and has tumbled almost 25 per cent in the last 6 months as compared to 8 per cent rise in the S&P BSE Sensex. 

See Zee Business Live TV Streaming Below:

In Q3FY22, the drugmaker’s EBITDA (earnings before interest tax and depreciation and amortization) margins dipped by 580 basis points (bps) sequentially, 1,050 bps year-on-year (YoY) to 9.9 per cent.  

Similarly, the EBITDA of the company more-than-halved, tumbling over 68.2 per cent YoY to Rs 1,671 crore. It said that excluding one-time expenses of Rs 193 crore, Q3FY22 EBIDTA margin was 14.6 per cent and PBT (profit before tax) was Rs 360 crore. 

On the contrary, the pharma major’s sales jumped marginally by 3.6 per cent YoY to Rs 4,161 crore wherein domestic formulations grew 7.8 per cent YoY to Rs 1,473 crore. 

“The inflationary environment has impacted margins, but we remain focussed on margin and EBIDTA improvement as we deliver on key product launches, cost optimization and improving efficiencies, especially by H2FY23,” Lupin said, adding that it is on the path of sustained growth across markets.  

Ace investor Rakesh Jhunjhunwala, during the September quarter, has reduced its stakes in the company below 1 per cent, as the name of the investor disappeared from the September shareholding pattern of the company available on the BSE. 

Rakesh Jhunjhunwala, who is also known as the Big Bull of Indian stocks markets, holds as many as 37 stocks in his portfolio along with his wife Rekha Jhunjhunwala and Associates with a net worth of Rs 35031.8 crore as of February 4, 2022, as per the stocks analysis website trendlyne.com.