Rakesh Jhunjhunwala stock 45% below 52-week high. Right time to accumulate?
2 min read . Updated: 01 Jul 2022, 08:16 AM IST
Premium- Rakesh Jhunjhunwala stock has been under base-building mode for near one year
Rakesh Jhunjhunwala portfolio: Rallis India shares have been under consolidation phase for near one year. Recently, it made a new 52-week low of ₹182.50 per share and it is still oscillating around this new low. On Thursday, Rallis India share price ended at ₹188 apiece levels, which is around 45 per cent below its 52-week high of ₹341.85 apiece levels.
According to stock market experts, this Rakesh Jhunjhunwala stock is looking weak from the fundamental perspective as it has reported a weak Q4 results. Company's margins are under the heat of cost inflation as raw material prices have gone high in recent times. As the company is not in a condition to increase prices, its numbers are expected to remain under pressure in next few quarters as well. However, from technical perspective, Rallis India shares have strong support at ₹165 levels, its previous resistance. So, there can be some bounce back in the counter, believe stock market experts.
Speaking on Rallis India shares, Sonam Srivastava, Founder at Wright Research — a SEBI registered investment advisor firm said, "Even though Rakesh Jhunjhunwala backs it, Rallis India shares have been continually declining for the last year, falling as much as 45% from the high. The decline started after the weak Q4 results in which the company's margins and other numbers declined due to cost inflation. The company is struggling with raw material shortages and steep cost inflation. The earnings were not encouraging, and the management hinted at the struggle in input costs and the continuing intermediates' availability. Therefore, we recommend people be cautious with this stock and not buy until the inflationary pressures calm downs."
Fiving technical view on this Rakesh Jhunjhunwala stock, Anuj Gupta, Vice President — Research at IIFL Securities said, "Rallis India has strong support at its previous resistance of ₹165 levels. The stock may give some bounce back and go up to ₹205 and ₹220 levels in short term. Those who have this stock in their portfolio can hold the scrip for ₹205 and ₹220 targets maintaining stop loss at ₹159 apiece levels."
Rakesh Jhunjhunwala shareholding in Rallis India
According to Rallis India shareholding pattern for Q4FY22, Big Bull and his wife Rekha Jhunjhunwala have shareholding in the company. Rakesh Jhunjhunwala owns 1,38,85,570 shares or 7.14 per cent stake while his wife Rekha Jhunjhunwala holds 51,82,750 shares, which is 2.67 per cent of total paid-up capital of the company. Hence, Jhunjhunwala couple holds 9.81 per cent stake in Rallis India.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
