Ajanta Pharma Hit All-Time High As Ex-Dividend Date Nears For 1250% Payout

Ajanta Pharma is a large-cap company which deals in delivering quality medicines across 30+ countries in the world. The scrip opened today on the BSE at Rs 1698.70 apiece and clocked an all-time high of Rs 1,776.70 during the morning deals which is also its intraday-high. Heavy buying demand was witnessed in the stock after strong Q1 results and ahead of the ex-dividend date for a 1250% payout.

Ajanta Pharma Dividend

The company said in a stock exchange filing that the Board of Directors has declared "1st interim dividend of Rs. 315 cr. for the year FY 2024. It translates into Rs. 25 per share (1250%) on face value of Rs. 2/- per share. This total dividend of Rs. 25 per share includes a regular dividend of Rs. 10 per share and an additional Rs. 15 per share, distributed as a special dividend on the commemoration of 50 years of momentous journey of the Company. Friday, 4th August 2023 has been fixed as the record date for payment of the interim dividend and special dividend. The dividend will be paid on or after 11th August 2023.

Ajanta Pharma Financials

The company's Revenue from operations reached Rs. 1,021 cr in Q1FY24 against Rs. 951 cr in Q1FY23 up 7% YoY. Its EBITDA was at Rs. 271 cr. against Rs. 222 cr in the year-ago quarter up 22%; its EBITDA margin was at 26%. The company reported a net profit of Rs. 208 cr in the quarter ended June 2023 up by 19% YoY from Rs. 175 cr recorded in the quarter ended June 2022 whereas the PAT margin stood at 20% in Q1FY24.

The firm has reported strong success over the past five fiscal years, with net profit improving at an 11% CAGR and revenue from operations broadening at a 16% CAGR.

Ajanta Pharma Share Price Target

Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International said, "Ajanta Pharma, currently trading at 1705, has exhibited favourable market conditions that indicate a potential mid-term upward trend. Notably, the stock recently experienced a 2-month breakout with substantial volumes at 1550, underlining increasing market interest and confidence in the company's performance. The stock's strong performance on weekly charts is noteworthy, as it comfortably trades above its moving averages.

This indicates positive momentum and suggests a robust underlying trend in the company's stock price. Furthermore, the Relative Strength Index (RSI) on the weekly charts, at 80, indicates strength and implies the potential for further upward movement in the near future."

"Additionally, On weekly charts the Bollinger Band has shown signs of expansion, signaling an increase in market volatility. Such conditions often precede significant price movements, and with the stock currently exhibiting good volume and strength, a promising uptrend is anticipated. Based on the above technical analysis, Ajanta Pharma is projected to reach a mid-term target range of 1865-1950. Investors and traders may find this an opportune time to consider the stock for potential gains, given the favorable market indicators and the company's positive performance outlook," said Ameya Ranadive.

Disclaimer

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