Buy This Pharma Stock, Trading Near 52-Week Low, For 20% Return, Dividend Income: ICICI Direct

ICICI Direct has assigned buy call to the stock of Ajanta Pharma Ltd with a target price of Rs 1505. The brokerage has recommended investors to buy the stock of Ajanta to receive potential 20% return and interim dividend. The interim dividend is likely to be paid on or after November 24, 2022.

The company has fixed record date for interim dividend as November 14, 2022. If you want to become eligible to receive dividend, it is necessary to buy the stock before the record date. Check key takeaways below:

1. Ajanta Pharma Ltd Stock Outlook

The last trading price of Ajanta Pharm Ltd is Rs 1255 apiece and the stock is currently 15% away from 52-week low price. The 52-week high of the stock is Rs 1569 apiece and 52-week low is Rs 1062 apiece, respectively.

2. Ajanta Pharma Ltd Fixed Record Date For Dividend

The board of directors of Ajanta Pharms Ltd has fixed record date for interim dividend. The company in its regulatory filing stated, "Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the record date for taking record of the Members of the Company for the purpose of determination of shareholders to whom interim dividend would be payable would be Monday, 14th November 2022."

3. Ajanta Pharma Ltd Return

The stock has given a return of 52% in last 5-years, 87% in last 3-years, and declined 14% in last 1-year. The stock declined more than 6% intraday today.

4. Valuation

According to ICICI Direct, "Ajanta's share price has grown by ~1.88x over the past three years (from ~Rs 670 in November 2019 to ~Rs 1265 in November 2022). We maintain BUY as it remains a compelling play on branded generics (~72% exposure) with strong execution track record and financials. Valued at Rs 1505 i.e. 22x P/E on FY24E EPS of Rs 68.3."

5. About Ajanta Pharma

Ajanta Pharma is a specialty pharmaceutical company providing medicines across 30+ countries all across the globe. Ajanta Pharma is a focused player in branded, which constitutes ~72% of overall sales, spread across geographies including India.

Among exports, Asia accounts for ~41% of export formulations, Africa 29% and US 30%. The company also participates in anti-malarial tenders in Africa (included in Africa). The company has a market capitalisation of Rs 16,089 crore.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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.