Ajanta Pharma share price jumped 8.7% to Rs 1,682.05 today after the company’s board approved the first interim dividend of Rs 315 crore for FY2024. The company’s net profit jumped 19.2% on-year to Rs 208.1 crore for the quarter ended June. Most analysts have recommended a ‘Buy’ rating on the stock. Ajanta Pharma shares have jumped 12% in the past one month and over 30% in the last one year.
Ajanta Pharma’s Rs 315 crore dividend translates into Rs 25 per share 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. In Q1FY24, total revenue rose 7.4% to Rs 1,021 against Rs 950.9 crore in the corresponding period of the preceding fiscal.
Should you buy, sell or hold Ajanta Pharma stock?
ICICI Direct: Buy – Target Price: Rs 1950
“Margins are likely to improve amid operational leverage, expected softening of raw material cost and incremental focus on branded business. Calculated focus, healthy margins, return profile and lighter balance sheet are some key differentiators for Ajanta. Return ratios are expected to reach 25% levels (ROIC even higher). We value Ajanta Pharma at Rs 1950 based on 27x FY25E P/E multiple.”
Nuvama: Buy – Target Price: Rs 1850
“We believe a 24.3% EBITDA margin for FY24 could grow to 26.4% by FY26. We keep FY24E/25E largely unchanged but increase the multiple to 25x (from 20x) due to margin expansion visibility. Maintain ‘BUY’ with a target price of Rs 1,850 based on Q1FY26E.”
Choice: Add – Target Price: Rs 1730
“We expect FY22-25E Revenue / EBITDA / PAT CAGR of 12.6% / 11% / 12.3%. We value the stock based on FY25E EPS to arrive at a target price of Rs 1,730 (valuing at 22x) and recommend ADD rating on the stock.”