Is Jubilant Industries catching your fancy after 120% surge in February? Read this before taking any positions

Jubilant Industries shares gained over 121 per cent in February. The stock has been on a gaining spree ever since the release of its Q3 FY24 numbers on February 9.

Besides, its board approved the demerger of Agri Products and Sulphuric Acid Business, which also helped the stock price. As per its investor presentation released on February 9, the board approved the company's restructuring for a better focus on the performance of its polymers business and for diversifying its agribusiness. 

From the technical point of view, in the last three weeks, the scrip has demonstrated an impressive performance, embarking on a noteworthy rally.

However, Jigar S Patel, Senior Manager, Technical Research, Anand Rathi Shares and Stock Brokers, suggests exercising caution on the stock as he sees a significant correction shortly.

"It's important to exercise caution, as the stock is currently trading significantly above all major exponential moving averages. Consequently, there is a heightened probability of a significant correction soon. Given this potential for a correction and the elevated risk associated with entering long positions at this juncture, it is advisable to refrain from initiating fresh long positions in Jubilant Industries," said Patel. 

How did the company fare in Q3? 

In Q3 FY24, Jubilant Industries reported a consolidated net loss of Rs 229.7 crore against a profit of Rs 62.7 crore a year ago. Its total revenue for the quarter came in at Rs 2,925.1 crore from Rs 3479.1 crore in the year-ago period. 

At close, shares of Jubilant Industries were locked in a 5 per cent lower circuit at Rs 1,349.95 in Monday's trade. 

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