Buy JUBLPHARMA: Target Rs 655, Stop-Loss Rs 549, Hold For 1-3 Months; Choice Broking

A mid-cap company in the pharmaceutical industry is Jubilant Pharmova Ltd. A multinational corporation, Jubilant Pharmova Limited is engaged in the following businesses: radiopharmaceuticals, proprietary novel drugs, CDMO sterile injectables, allergy immunotherapy, and contract research development and manufacturing organisations (CRDMOs). One of Rekha Rakesh Jhunjhunwala's portfolio stocks, Jubilant Pharmova, is now in the spotlight after Choice Broking Executive Director Sumeet Bagadia issued a buy call with a target price of Rs 655.

Jubilant Pharmova Share Price Target

Buy JUBLPHARMA @ 589.85 and add upto 572 with a target of 655 and a stop loss at 549, duration: 1 to 3 months

JUBLPHARMA, currently trading at 589.85 levels, has exhibited a notable rebound from a robust support base around 550, aligning closely with its 50-day Exponential Moving Average(EMA).

The stock's resilience at this support level is a positive sign, emphasizing its capacity to move higher. A compelling technical development is the breakout from a rounding bottom pattern on the daily charts, further validating the bullish sentiment.

JUBLPHARMA is trading above key moving averages, including the 20, 50, and 200-day EMAs, highlighting its strong positioning and indicating a sustained upward trend. The momentum indicator, Relative Strength Index (RSI), at 53.82, indicates strength and supports the bullish outlook. A minor resistance near 615 levels could pose a challenge, but a successful breakthrough may propel the stock towards the target levels of 655.

Jubilant Pharmova Financials

The company's total income grew by 10% YoY to Rs. 1,713 Cr in the December 2023 quarter compared to Rs 1,562 Cr in the same quarter of the previous fiscal. EBITDA grew by 63% YoY to Rs. 254 Cr. and EBITDA margins expanded by 490 bps YoY in Q3FY24. The company reported a net profit of Rs 66 Cr in Q3FY24 on improved operating performance & higher share of profit from associates ( Majority contributed by Sofie Biosciences Inc.) compared to a net loss of Rs 16 Cr in Q3FY23.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.