Rs 51 Dividend, 1:2 Bonus: Pharma Stock Gains 8.01% On Buyback Plan, Buy; TP Rs 2565: Motilal Oswal

Mid cap pharmaceuticals sector company Ajanta Pharma Ltd shares gained 8.01% in 1 week after it reported healthy Q4 results and buyback plan. The company on Thursday announced a surge of 66% in its net profit for March quarter to Rs 203 crore amid strong sales across domestic and global markets. Ajanta Pharma declared a net profit of Rs 122 crore for the corresponding quarter of last year. Last trading price of Ajanta Pharma share on BSE is Rs 2377.00 per share as on May 3. Leading brokerage firm Motilal Oswal and Nirmal Bang recommended buy call for Ajanta Pharma share. Ajanta Pharma share witnessed spurt in volume by more than 6.39 times on May 3.

Ajanta Pharma shares also traded fresh 52-week high on May 3. Ajanta Pharma Ltd announced an equity dividend amounting to Rs 51.00 per share in last 1-year, declared 2 bonus issues, and split stock twice so far. Number of FII/FPI investors increased from 255 to 263 in March 2024 quarter. Tata Aia Life Insurance Co Ltd-Whole Life Mid Cap Equity Fund has 1.65% stake with 2,081,493 shares of the company. More details below:

Ajanta Pharma Q4 Results: Its revenue from operations jumped to Rs 1054 crore for the March 2024 quarter as against Rs 882 crore announced in the similar quarter of last year, as per the BSE filing. The company declared its consolidated profit at Rs 816 crore for year ended March 2024 as compared to Rs 588 crore announced in 2023-24 financial year. Revenue from operations surged to Rs 4,209 crore for FY 2024 as against Rs 3743 crore in FY 2023.

Ajanta Pharma said it distributed Rs 642 crore in the form of dividend in FY2024 to its shareholders.

Ajanta Pharma Record Date Set For Buyback Plan: The Board of Directors of Ajanta Pharma fixed May 30, 2024 as the record date to determine the entitlement and names of Equity Shareholders, who shall be entitled to participate in the proposed offer for Buy-back of up to 10,28,881 Equity Shares of the Company at the price of Rs 2,770/- per Equity Share.

Ajanta Pharma Share Performance & Return: The 52-week high price of Ajanta Pharma share on BSE is Rs 2531.95 per share (as on 03/05/2024) and 52-week low price is Rs 1240.55 apiece (as on 15/05/2023), respectively. Ajanta Pharma has a market capitalisation of Rs 29,930.15 crore. Ajanta Pharma shares gave return of over 14% in last 2-weeks, jumped 85% in last 1-year, gained 98% in last 2-years, and offered return of 238% in last 5-years. In last 10-years, Ajanta Pharma shares zoomed 816%.

Ajanta Pharma Bonus Share, Stock Split History: Ajanta Pharma offered 2 bonus issues since September 17, 2013. The last Bonus that Ajanta Pharma declared was in the ratio 1:2 with ex-bonus date fixed as June 22, 2022. Ajanta Pharma Ltd. split the face value of its shares twice since August 9, 2012. Ajanta Pharma last split the face value of its shares from Rs 5 to Rs 2 in 2015.The share quoted ex-split as on March 20, 2015.

Ajanta Pharma Dividend History: Ajanta Pharma Ltd announced 23 dividends since September 5, 2001. In the past 12 months, Ajanta Pharma Ltd announced an equity dividend amounting to Rs 51.00 per share. At the current share price of Rs 2377.00, Ajanta Pharma Ltd offers a dividend yield of 2.14%.

Analysts Recommend Buy Call To Ajanta Pharma Share: According to Nirmal Bang, "We remain positive about Ajanta Pharma's prospects given its branded play and strong focus on the domestic market, combined with drug shortages and reduced pricing pressure in the US. We have maintained BUY on Ajanta Pharma with a revised target price (TP) of Rs 2,613, valuing it at 25 times on FY26E earnings."

Meanwhile, Motilal Oswal estimates the pharma stock at 27 times 12-month forward earnings to arrive at a price target of Rs 2,565 per share. The analyst expects 17% earnings CAGR over FY24-26, backed by a 12%/15% sales.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.