After the recent ease in the supply of raw materials, the chemical sector has been doing well. In addition, the stock is forming a positive RSI divergence on its daily chart. Additionally, Jubilant Ingrevia Share Price volumes have been high on green days and low on pullbacks. Both these factors indicate buying interest. Moreover, the promoters have bought the stock around the same level. A breakout of this range will allow them to go long. The stock has formed a temporary base of around 520. The risk-reward ratio will be very favorable for a breakout.
Stock Of Jubilant Ingrevia Has Shown A Significant Fall
The recent decline in the share price of Jubilant Ingrevia Limited could be a sign that the company is suffering from a weak quarterly performance. The company has reported a lower-than-expected first-quarter profit, and Edelweiss analysts blamed margin pressure in the commodity segment for the disappointing result. Despite this negative outlook, Edelweiss remains bullish on Jubilant Ingrevia stock and believes that the successful execution of its Capex plans in the value-added segment will be crucial to achieving its growth ambition.
The stock of Jubilant Ingrevia has sunk under an important moving average line, and a breakout would be bullish. However, if the company continues to fall, a break below 489 could signal a bearish move. In the meantime, the stock is trading below an important moving average line, which means it is already semi-oversold. In other words, it may show a recovery tomorrow, but if it continues to fall below this line, it could fall further.
This trend has also negatively affected the benchmark S&P BSE SENSEX, which closed at 58,389.9 at the end of the day. Hence, it is recommended to keep a low position in Jubilant Ingrevia Ltd. The company is now trading at around Rs 490.9 on the NSE. It has a low P/E ratio, which means it is a good option for investors.
Stock Of Jubilant Ingrevia Has Poor Technical Strength
Jubilant Ingrevia (JIL) is a global integrated life science products company that serves pharmaceutical, nutrition, agrochemical, consumer, and industrial customers. The company offers a broad portfolio of high-quality ingredients and custom research and manufacturing services. This harms its technical strength. However, the company’s current valuation multiples suggest that the stock remains a good buy.
Despite the weaker than expected quarterly results, Edelweiss is still bullish on Jubilant Ingrevia’s prospects. It thinks that the successful execution of Capex’s plans for the company’s value-added segment will support the company’s growth ambitions. The stock’s technical strength is a signal that it is time to consider an investment in Jubilant Ingrevia.
The company’s consolidated web revenue for the fourth quarter ended March 31, 2021, rose 13%. The company also reported first-quarter earnings. The company has three business segments, namely, generic pharmaceuticals, and biotechnology. In the fourth quarter, Jubilant Pharmova reported a consolidated web revenue of Rs 214 crore. The company is a pharma-based non-govt company that employs approximately 5,800 multicultural employees worldwide. Jubilant Pharma has a diversified portfolio, consisting of pharmaceutical, biotechnology, and agrochemicals businesses.
Stock Of Jubilant Ingrevia Has Poor Fundamentals
The stock of Jubilant Ingrevia has poor technical fundamentals. It is trading below a significant moving average line and has crossed that line recently. While the stock is oversold, it could be recovering small or large. Likewise, it is semi-oversold, and recovery could happen tomorrow. However, a bearish move below 489 may be a more likely outcome.
The stock of Jubilant Ingrevia has a market capitalization of Rs84 billion and is owned by insiders with a 14% stake. This shows that insiders can’t easily be ignored. The fact that Jubilant Ingrevia has an insider stake of over 14% is also concerning. In addition, insiders cannot easily change company policy. As such, it is important to check the quality of a company before investing.
The Company has a few key M&A activities. Recently, it was acquired by another Family office. This is a negative sign for investors, but it highlights the future potential of the industry. Vertellus LLC is the world’s oldest diketene producing company and was bought by another Family office a few months ago. The ownership transition should have minimal impact on demand and supply. However, the company’s poor fundamentals should not be overlooked.
Lastly, Is This A Good Buy?
The stock of Jubilant Ingrevia (JUBBINGREA) is trading below a good moving average line. However, it crossed this important moving average line recently. This suggests that the stock may be oversold and have a small or large recovery tomorrow. This stock could also move lower in the near term as it’s currently semi-oversold. This means that it could recover tomorrow but a break below 489 would be a bearish sign.
Jubilant Ingrevia is a specialty ingredient company based in India. The company manufactures a broad portfolio of agrochemical and pharmaceutical ingredients. It also provides custom research and manufacturing services for a variety of customers. The company is responsible for the environment and prides itself on being a partner of choice. With the company’s focus on innovation, Jubilant Ingrevia has a good dividend yield and is currently trading below a good dividend yield line.
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