Synopsis:
Ajanta Soya hit a 20% lower circuit after it reported a 65% decline in net profit on a quarter-on-quarter basis, followed by a 20% decline in revenue during the same period.
The shares of this producer and seller of edible oils are in focus after it reported a poor financial performance. In this article, we will dive more into the details.
With a market capitalization of Rs 222 crore, the shares of Ajanta Soya Ltd touched a day low of Rs 26.44 per share, hitting its 20 percent lower circuit limit from its previous day closing price of Rs 33.04 per share. Over the past five years, the stock has delivered an impressive return of 208 percent.
Q1 Highlights
Ajanta Soya’s revenue for Q1 FY26 came in at Rs 312 crore, registering a 15 percent growth from Rs 272 crore in the same quarter last year. However, on a sequential basis, revenue declined by 20 percent from Rs 388 crore in Q4 FY25.
Regarding its profitability, the company reported a 59 percent decline in net profit to Rs 1.78 crore in Q1 FY26, compared to Rs 4.37 crore in Q1 FY25. Additionally, on a QoQ basis, it declined by 65 percent from Rs 5 crore.
The stock delivered an ROE and ROCE of 18.75 percent and 27.54 percent respectively, and is currently trading at a low P/E of 8.13x as compared to its industry average of 28x.
Coming to its shareholding structure, Promoters hold 47.71 percent stake in the company, followed by the Public with 52.05 percent and DIIs with 0.24 percent.
Ajanta Soya Limited is a well-known Indian company that specializes in producing and selling vanaspati and refined edible oils. Their impressive lineup features a variety of oils, including soybean, palm, sunflower, rice bran, mustard, groundnut, and cottonseed, as well as different types of fats.
They also create bakery shortening, which is perfect for making delicious biscuits, puffs, pastries, and other baked treats. You can find Ajanta Soya’s products both online and in stores, marketed under brand names like Dhruv, Anchal, Nutri-1992, ASL Pure, Parv, ASL Fine Fingers, and ASL.
Written by Satyajeet Mukherjee
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