Synopsis: Blue Jet Healthcare hit a 10% upper circuit after a sharp 19% two-day crash triggered by weak Q3FY26 results. The rebound was driven by bargain buying, management’s clarification on cyclical API weakness, aggressive capex plans, and oversold technical indicators, suggesting the earlier sell-off may have been excessive.
The shares of this company, which is a pharmaceutical and healthcare ingredient & intermediate company and the largest manufacturer of saccharin and its salts (artificial sweeteners) in India, had its shares in momentum today after it rebounded from a 19% crash in two sessions.
With a market cap of Rs 6,782 crore, the shares of Blue Jet Healthcare Ltd hit a 10% upper circuit in today’s trading session and reached a high of Rs 390.95. When compared to its previous day’s closing price of Rs 355.45, the shares are trading at a PE of 23 compared to its industry PE of 28.2.
Strong Bounce Following a Brutal Crash
Blue Jet Healthcare marked a strong 10% upper circuit on the day after crashing a staggering 19% in just two trading days following its terrible Q3FY26 results. The company’s revenue had dived 40% YoY, while its net profit had tumbled 59% YoY, pushing the stock to the brink of its IPO level of Rs 346.
The Q3 result was primarily impacted by a 72.6% decline in the API business, which the company explained was due to channel de-stocking and supply chain optimisation for global customers and not a loss of business. Investors who ignored the numbers and listened to the management’s explanation would have realised that the destruction of demand was only cyclical, not structural, and hence the crash was a temporary reaction, and today’s bounce is only a correction.
The management’s growth plan is still on track and very aggressive. The Rs 1,000 crore Greenfield Project in Vizag had its groundbreaking ceremony planned for February 2026, while the Mahad facility expansion for backward integration into contrast media intermediates is targeted to be nearing completion by Q1FY27. These are not the steps of a company in structural decline, and institutional investors tracking these catalysts would have found the sell-off to be an excellent entry point.
After declining by close to 62% from its 52-week high of Rs 1,027.80, the stock had fallen into deeply oversold territory across all key technical charts, with the RSI deeply below 30 and trading below all key moving averages, including the 200-DMA. Such deeply oversold levels are almost always followed by violent snap-back rallies, especially when triggered by a fundamental event such as an investor meet. Today’s 10% upper circuit is a classic example of oversold technicals meeting a fundamental trigger, with the overall recovery story providing the fundamental support base.
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