Ajanta Pharma hits record high on impressive Q1 nos, 1,250% dividend payout

Ajanta Pharma share price: Shares of Ajanta Pharma hit a lifetime high of Rs 1,682.05 apiece on the BSE in the early morning trade on Friday, a day after the company reported its June quarter (Q1FY24) numbers. The stock ended at Rs 1,612.85 on the BSE, up 4.31 per cent.

The company, in its earnings release, said that its revenue from operations stood at Rs 1,021 crore against Rs 951 crore in the year-ago period, up 7 per cent. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter under review came in at Rs 271 crore, up 22 per cent year-on-year (YoY). Its Profit after tax (PAT) surged 19 per cent YoY to Rs 208 crore against Rs 175 crore registered in the year-ago quarter.

Besides, the pharma company also informed that its Board of Directors has approved the first interim dividend of Rs 315 crore for the year FY 2024. It translated into Rs 25 per share (1250 per cent) for each Rs 2 face value 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, "the press release added. 

Branded Generic Business (Q1 FY 2024)

Source: Earnings release

Ajanta Pharma's share price

In the past three months, the stock has gained 29 per cent (including today's high on the NSE, i.e., 1697.95), Trendlyne data show. 

What analysts say 

After a subdued FY23, the beginning of FY24 was strong, with a better-than-expected improvement in margin and robust domestic growth. The company has also reiterated that it will maintain mid- to low-teen growth for branded markets with 25 per cent margins for FY24.

"We remain positive on Ajanta Pharma given its branded play and a strong focus on the domestic market. We maintain BUY on Ajanta Pharma with a revised target price (TP) of Rs 1,800, valuing it at 24x on June 25E earnings," say analysts at Nirmal Bang Securities.