Jhunjhunwala Portfolio: This stock of Jhunjhunwala can earn profits in both ups and downs of the market. It can jump up to about 131 percent from the current price.
Jhunjhunwala Portfolio: There has been a great buying opportunity in Jubilant Ingrevia, included in the portfolio of veteran investor Rakesh Jhunjhunwala. Today its stock has gained about four per cent and analysts at brokerage firm Monarch Networth Capital estimate that it may jump 81 per cent more. However, in the bull case, it can reach the price of Rs 1136 i.e. 131 percent profit. In the beer case, it will reach only Rs 552 but in this situation also there will be a profit of 12 percent.
Its shares are getting at a discount of about 41 percent from the record level of 52 weeks, due to which it is at a very attractive price to buy. According to the company results of March 2022 quarter, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 4.7 percent stake in this company. Jubilant Ingravia is a leading player in the specialty chemicals, nutrition and health solutions and life science chemicals sectors.
This is why experts are betting on Jubilant Ingrevia
- Jubilant Ingravia is shifting its focus to non-commodity segments like specialty chemicals and nutrition business and will invest capital expenditure in it. 60 percent of the capex (capital expenditure) announced by the company of Rs 21,450 crore will be spent on specialty chemicals.
- The company has estimated that after the capital expenditure, its sales can increase by double from the financial year 2021-22.
- CDMO (Contract Development and Manufacturing Company) can increase the overall revenue of specialty chemicals.
- Once the food grade acetic acid plant is commissioned, the volatility of the chemical intermediates will reduce and the blending margin is expected to improve.
- In view of all these things, the brokerage firm believes that its business will increase on the basis of capex. Right now its shares are being found at an attractive price and there is very little chance of a fall in it. In such a situation, if you invest at the current price, then by March 2023, you can earn 81 percent profit at the target price of Rs 890.
Shares are available at 41% discount
The shares of Jubilant Ingravia were at Rs 838.75 last year on October 18, 2021, which is a record high of 52 weeks. At present, its price is Rs 491.15 per share, which is at a discount of about 41 percent from the record high of 52 weeks. On March 8 this year, it had slipped to a record low of Rs 401.20 for 52 weeks, but after that it recovered and has strengthened 22 percent so far. According to brokerage firm Monarch Networth Capital, its growth is not going to stop yet and by investing at the current price, it can earn 81 percent profit by March 2023.
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(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
