While market experts are advising investors to stay away from the pharmaceutical sector, topnotch investor Rakesh Jhunjhunwala’s wife has picked up 0.9% stake in Fortis Healthcare for an estimated Rs 60 crores, through an open market transaction. The shares were purchased at an average price of Rs 134.65 on Tuesday, valuing the transaction at Rs 60.59 crore, according to bulk deal data available with the National Stock Exchange (NSE).
Stocks of Fortis Healthcare have displayed negative 20% returns in the year so far. Moreover, the BSE Healthcare index has dropped to more than 13% in the last one month. On Wednesday morning, the shares were trading up 5% at Rs 148.
Rakesh Jhunjhunwala had bought the shares of Fortis Healthcare (34,85,075) before also, in February 2015, at Rs 119.35 apiece, for over Rs 41 crore through an open market deal.
Earlier, Rakesh Jhunjhunwala had increased his stake in Lupin Ltd to 1.76%, as on June end, according to the shareholding data filed by Lupin Ltd. The ace investor held 1.73% in the previous quarter Jan-Mar 17. In fact, Lupin has posted results which were way below the street expectations. The pharmaceutical company reported a net profit drop just shy of 60% as compared to the corresponding period in the previous fiscal.
According to Mahesh Patil, Co-CIO Birla Sun Life Mutual Fund, there is further downside in the Pharma sector.
Adrian Mowat, JP Morgan, chief emerging markets and Asian equity strategist too corresponded that there are concerns in the IT and pharma space.