Shares of Jubilant Pharmova rebounded sharply in Friday’s trade on BSE amid heavy volumes. The stock surged 11.33 per cent to hit a day high of Rs 309.50 over its previous close of Rs 278. Around 67,000 shares changed hands today on BSE, which was more than five times higher compared to Jubilant Pharmova’s two-week average volume of 13,000 shares. Turnover on the counter stood at Rs 2.04 crore, commanding a market capitalisation (m-cap) of Rs 4,892.32 crore.
At today’s high price of Rs 309.50, Jubilant Pharmova traded 12.96 per cent higher from its 52-week low of Rs 274, hit in the previous session. That said, it traded 37.54 per cent lower from its one-year high of Rs 495.55, touched on April 22 last year.
The sharp movement in the share price came after Jubilant Pharmova announced that its subsidiary Jubilant HollisterStier has received approval from Canada to provide, through its Strategic Innovation Fund (SIF) program, a partially repayable loan of CAD 23.8 million to fund the CAD 108 million capacity expansion at the Montreal manufacturing facility.
“This loan is in addition to an earlier announced CAD 25 million loan committed by the Province of Quebec, for the same expansion project. This expansion project is aimed at upgrading the company’s Montreal facility and increasing its fill and finish capacity, ” it stated.
Pramod Yadav, CEO, Jubilant Pharma said, “Jubilant HollisterStier is excited to be chosen as a part of the eco-system being strengthened by Canada to better position the country for its future needs of vaccines and treatments for potential pandemics. This funding will enable our continued efforts to expand our capabilities in Canada and create more jobs.”
On the technical front, AR Ramachandran from Tips2trades said, “Jubilant Pharmanova looks positive and a daily close above Rs 309 could lead to a target of Rs 323 in the near term. Support will be at Rs 287.4.”
The stock was last seen trading higher than the 5-day moving averages but lower than the 20-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 46.75. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 57.04.
The scrip has an average target price of Rs 406, Trendlyne data showed, suggesting a potential upside of 33.03 per cent. It has a one-year beta of 0.77, indicating low volatility on the counter.
Jubilant Pharmova (formerly Jubilant Life Sciences) is engaged in radiopharma, allergy immunotherapy, CDMO of sterile injectable, generics, contract research development and manufacturing (CRDMO) and proprietary novel drugs businesses. With a network of 46 radio-pharmacies in the US, Jubilant’s radiopharma business is engaged in the manufacturing and supply of radiopharmaceutical products and services.
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