Ajanta Pharma

Steady outlook and higher returns triggers for companies refining their strategy

The stock has underperformed peers and the benchmark over the past year

Promoter entities of Ajanta Pharma on Thursday divested 4.3 per cent stake in the company for Rs 637 crore through open market transactions. The buyers included over two dozen funds such as UTI Mutual Fund (MF), Aditya Birla Sun Life MF, Franklin Templeton MF, ICICI Prudential MF, Mirae Asset MF, Abu Dhabi Investment Authority and Tata AIA Life Insurance Company, among others. Aayush Agrawal Trust and Ravi Agrawal Trust offloaded a total of 54,92,846 shares, amounting to 4.3 per cent stake in Ajanta Pharma, as per block deal data with the National Stock Exchange (NSE). The shares were offloaded at an average price of Rs 1,160.1 per scrip, taking the transaction value to Rs 637.22 crore. Following the stake sale, the promoter and promoter group entities' shareholding has come down to 66.18 per cent from 70.48 per cent. Ajanta Pharma's shares closed 5.22 per cent higher at Rs 1,233 apiece on NSE. Mumbai-based Ajanta Pharma is a speciality pharmaceutical formulation company.

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The technical analyst also recommends to hold Nifty longs with a stop at 16,300; on the upside, he expects resistance for the NSE benchmark around 16,800.

The company had fixed June 23, 2022 as the record date for the bonus issue in the proportion of one equity share for every two equity shares held

In Q4FY22, Ajanta's earnings before interest, taxes, depreciation, and amortization declined 20 per cent year-on- year to Rs 207 crore.

Ajanta Pharma on Tuesday said its consolidated profit after tax declined by 5 per cent to Rs 151 crore for the fourth quarter ended March 2022.

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Drug firm Ajanta Pharma said its board has approved a share buyback plan of up to Rs 286-crore, wherein the drug maker will buy back shares at a maximum price of Rs 2,550 apiece.

The board of directors of the company is scheduled to consider a proposal for buy-back of equity shares on Tuesday, December 28.

Data Patterns is likely to witness a bumper listing, with Grey Market Premium (GMP) indicating a likely 45-50 per cent premium to its issue price.

Shares of the company were trading 1.17 per cent down at Rs 2,102.80 apiece on the BSE

Oscillators like RSI and MFI have broken out from the downward slopping trendline, indicating strength in Nifty's current rally

Despite normalisation in fixed costs (at pre-Covid levels), the company's Ebitda margin came 372 bps higher YoY at 32 per cent, driven by improvement in gross margin

In the past six months, Ajanta Pharma has underperformed the market by gaining 8.9 per cent against 26 per cent rally in S&P BSE Healthcare index

Ajanta Pharma's stock has seen a fresh breakout from the trading range of roughly 1350-1480 levels

Completion of capex, improving prospects among positives

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Revenue from operation stood at Rs 651 crore, up 34 per cent YoY while EBITDA grew 73 per cent YoY to Rs 186 crore.