Jubilant Life corrects 15% in three days

Jubilant Life Sciences tumbled 5.46% to Rs 707.9, falling for the third consecutive trading session.

The stock has lost nearly 15% in three trading sessions from its previous closing high of Rs 829.60 on 4 September 2020.

The recent selling was triggered by the company's dismal Q1 numbers announced after market hours on 4 September 2020. The company's consolidated net profit declined 52.4% to Rs 88 crore on a 14% slide in net sales to Rs 1845.24 crore in Q1 June 2020 over Q1 June 2019.

Consolidated EBITDA slipped 30.1% to Rs 310 crore in Q1 June 2020 from Rs 444 crore in Q1 June 2019. EBITDA margin declined to 16.4% in Q1 June 2020 from 20.4% in Q1 June 2019. Jubilant Life clarified it reduced net debt on a constant currency basis by Rs 343 crore during Q1 June 2020.

The stock has declined 22.19% from its 52-week high of Rs 909.75 hit on 4 August 2020. It has surged 207.78% from its 52-week low of Rs 230 hit on 25 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 35.522. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading below its 50 days simple moving average placed at 772.09 but above its 100 days simple moving average placed at 639.11. These levels will act as a crucial resistance and support levels in near term.

Jubilant Life Sciences is an integrated global pharmaceutical and life sciences company engaged in pharmaceuticals, life science ingredients and drug discovery & development solutions businesses.

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