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.
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.”