Highest Ever Rs 26/Share Dividend: Specialty Pharma Stock Sets Record Date; Buy?

During Friday's closing session, Ajanta Pharma, a large-cap pharmaceutical company, registered a market cap of Rs 27,071.87 Cr. Market observers will be paying close attention to Ajanta Pharma because it has announced its highest-ever dividend. The firm has declared its second interim dividend for FY24 as well as its financial results for the quarter that ended on December 31, 2023.

Ajanta Pharma Dividend

"The Board of Directors have approved second interim dividend for the year FY 2024. Each share of Rs. 2 face value will receive a dividend of Rs. 26, amounting to the dividend amount of Rs. 327 cr. In Q1 for this year, board of directors had approved the dividend of Rs. 25 per share having face value of Rs. 2, amounting to dividend of Rs. 315 cr. Hence, for 9M of FY2024, company has given the dividend of Rs. 51 per share having face value of Rs. 2. And the total dividend pay-out in 9M stands at Rs. 642 cr., which is 96% of cashflow from operations for the period. The dividend yield works out to 2.42% based on closing price of 30th January, 2024," said Ajanta Pharma in a stock exchange filing.

The record date for the payment of the second interim dividend has been set by the firm for Thursday, February 8, 2024. The dividend will be paid on or after February 19, 2024.

Ajanta Pharma Financials

For the quarter ended 31st December 2023, the company reported revenue from operations of Rs. 1,105 cr up by 14% YoY from Rs 972 cr reported in the year-ago quarter. EBITDA reached Rs. 314 cr in Q3FY24 up 85% YoY from Rs. 170 cr in Q3FY23 whereas the EBITDA margin stood at 28%. Ajanta Pharma said its net profit for the quarter under review was Rs. 210 cr which was Rs. 135 cr in the same quarter of FY23 representing a growth of 56% YoY, while PAT margin reached 19% in Q3FY24.

With net profit growing at an 11% CAGR and revenue from operations growing at a 16% CAGR during the previous five fiscal years, the firm has demonstrated strong performance.

Ajanta Pharma Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, AJANTPHARM is currently trading at 2175.10 levels and appears to be in a consolidation phase within the range of 2100-2305. This range aligns with a robust support zone at 2100, encompassing the 50-day Exponential Moving Averages (EMA). The convergence of these factors suggests a significant level of stability and a potential opportunity for traders and investors.

The consolidation within this range reflects a delicate equilibrium between buying and selling pressures, indicating a period of price discovery and market participants reassessing their positions. It is noteworthy that the support zone includes the 50-day EMA, further reinforcing its significance.

A potential breakout above the upper boundary of this consolidation range, specifically above 2305 levels, could act as a catalyst for a bullish move. In such a scenario, traders might look to capitalize on the upward momentum, with a target set at 2415 and possibly beyond.

The Momentum indicator, Relative Strength Index (RSI), currently stands at 53.45 levels, signalling a neutral stance. This suggests that there is no significant bias towards overbought or oversold conditions, supporting the notion of a balanced market.

Traders and investors are advised to closely monitor the price action and be vigilant for a potential breakout. The support range, particularly around 2100 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for AJANTPHARM, contingent on a decisive breakout above the upper boundary of the consolidation range.

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.