Despite the COVID-19 pandemic thrashing the capital market and multiple businesses around the world, some listed companies gained momentum, and one of them is Jubilant Life Sciences. Not to forget that this stock is in the portfolio of big bull Rakesh Jhunjhunwala, who holds over 4 percent stake in the company.

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In the last five years, the stock has jumped about 430 percent to current levels. However, the biggest rally was seen this year when the stock climbed 223 percent in four months despite the negative effects of the COVID-19 pandemic. In the month of July alone, the stock has risen 14.5 percent so far.

Coming to ace investor Jhunjhunwala, he raised his stake in the pharma firm in Q1FY21. He held 81,45,800 shares in the firm in the last quarter against 70,25,000 shares held in the March quarter, translating to a 4.41 percent stake in the company as against 3.45 percent shareholding for the quarter ended December 2019.

Like most other pharmaceutical companies, Jubilant Life Sciences is part of the COVID-19 vaccine race. In fact, the company has signed a non-exclusive voluntary licensing agreement with Gilead Sciences, that allows the company to manufacture the coronavirus drug remdesivir.

Last week, the company received drug regulator DCGI's approval for a generic version of antiviral drug remdesivir 100 mg/vial for restricted emergency use in India for the treatment of severe COVID-19.

In terms of earnings, the company has reported strong Q4FY20 earnings. It reported a consolidated net profit of Rs 260.49 crore for the quarter ended on March 31, 2020, driven by robust sales in the pharmaceuticals segment. Jubilant Life Sciences reported a net loss of Rs 100.65 crore during the corresponding period of the previous fiscal.

Consolidated revenue from operations stood at Rs 2,391.41 crore for the quarter under consideration as against Rs 2,385.58 crore for the same period last year.

Moreover, during the year (FY20), the company reduced its net debt by Rs 514 crore, and it will further deleverage by generating healthy levels of cash flows, said the company in its earnings press release.

On Monday, the stock ended 2.25 percent lower to Rs 735.70 apiece on the NSE.

First Published:Jul 28, 2020 7:53 AM IST