Rs 25/Share Dividend! Motilal Oswal Places Buy On Midcap Stock, To Go Ex-Dividend For 1250% Payout

Leading brokerage firm Motilal Oswal Financial Services has placed a Buy on Ajanta Pharma Ltd. with a target price of Rs 1,800 per share. Considering the given target price, the stock is likely to give a decent return of up to 12% if purchased at the current market price.

The stock is set to trade ex-dividend next week, on Aug 04, 2023, for 1250% dividend payout. The Board of Directors of the company on July 27, 2023, recommended 1st Interim Dividend of Rs 315 Crore which translates into Rs 25/share i.e., 1250%.

Ajanta Pharma is a midcap specialty pharmaceutical company. The market cap of the company is Rs 20,308.31 Crore.

Motilal Oswal Financial Services Said, "We raise our earnings estimates for FY24/FY25 by 7.5% each factoring in: a) the lower intensity of price erosion in the US generics segment, b) superior execution in branded generics segment and c) lower operational cost."

It adeed, "We value AJP at 22x 12M forward earnings to arrive at our TP of INR1,800. We expect 23% earnings CAGR over FY23-25, led by 15% sales CAGR in Domestic Formulation (DF)/Asia and 13% sales CAGR in the US segment, supported by 370bp margin expansion. Considering the earnings outlook and attractive valuation, we reiterate our BUY rating on the stock."

On Friday, Ajanta Pharma's stock in early trade hit a new 52-week-high at Rs 1735.10 apiece, ended at Rs 1612.85 per share, up 4.31%. Its 52-week-low is Rs 1115.15 per share.

In the last 1 week, stock gained 14.15%. In the last 1 month, it jumped 8.97%, while in 3 and 5 months, it jumped 22.37% and 36.47%, respectively. The stock has given 26.62% positive return, 67.82% in 3 years, and 121.24% in 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal Financial Services. 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 consult with certified experts before making any investment decision.