Rs. 28 Dividend By Pharma Stock: 6th November Record Date; Right Time To Buy?

Speciality pharmaceutical formulation firm Ajanta Pharma primarily concentrates on branded generic business in Asia, Africa, and India. The company is present on the ground in all 30+ of these nations. Many of the company's products lead their sub-therapeutic sectors and are first to market. The company is also present in the United States in both generic and institutional business in Africa. Mumbai is home to the company's cutting-edge R&D facility. The company operates seven top-notch manufacturing plants in India. The firm has reported a robust revenue CAGR of 13% and an even more robust PAT CAGR of 15% over the last five fiscal years.

Ajanta Pharma Dividend

The Board of Directors have considered and approved "1st interim dividend for the year FY 2025. Each share of Rs. 2 face value will receive a dividend of Rs. 28, amounting to Rs. 350 cr. Fixed Wednesday, 6th November 2024 as the Record date for payment of 1st interim dividend. Dividend will be paid on or after 15th November 2024," said the company in a regulatory filing.

"Today Board of Directors have approved 1st interim dividend of Rs. 28 per share for face value of Rs. 2 per share amounting to Rs. 350 cr. With this, total payout in current financial year becomes Rs. 701 cr., which is 90% of cashflow from operations of H1 FY 2025," Ajanta Pharma informed stock exchanges.

Ajanta Pharma Financials

Ajanta Pharma reported an 11% year-on-year increase in profit for the July-September quarter of the current fiscal, coming in at Rs 216 crore, compared to Rs 195 crore for the same time last year. Revenue from operations increased from Rs 1,028 crore in Q2FY24 to Rs 1,187 crore in Q2FY25, a 15% year-on-year growth. Earnings Before Interest, Tax, Depreciation, and Amortisation, or EBITDA, was Rs 311 crore during the quarter under review compared to Rs 291 crore during the same period last year.

Ajanta Pharma Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "AJANTPHARM is currently trading at Rs 3000, having recently experienced a correction of approximately 17% from its peak over the past few weeks. The stock is showing signs of a bullish reversal from its demand zone and respecting key moving averages, with the 100-day EMA providing solid support. A sustained close above Rs 3140 would confirm a bullish reversal, potentially paving the way for further gains with a short-term target of Rs 3600."

"On the downside, the immediate support level is at Rs 2900, which could present a buying opportunity. To manage risk, a stop-loss at Rs 2750 is advisable to guard against any unexpected declines. The Relative Strength Index (RSI) is currently at 42.82 and trending upward, indicating increasing buying momentum. In summary, AJANTPHARM is consolidating near its support level, with a close above Rs 3140 likely to confirm the reversal and lead to upward momentum toward a target of Rs 3600," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.