The shares of the pharmaceutical product manufacturer gained up to 13 percent after the company’s net profit and revenue increased up to 66 percent and 19 percent YoY, respectively in the fourth quarter.
With a market capitalization of Rs 30,604.43 crore, the shares of Ajanta Pharma Ltd were trading at Rs 2,430.55 per share, increasing around 8.01 percent as compared to the previous closing price of Rs 2,233.10 apiece
Looking into the company’s performance, Ajanta Pharma Ltd’s revenue decreased by 5 percent on a quarter-on-quarter basis from Rs. 1,105 crore in Q3FY24 to Rs.1,054 crore in Q4FY24. Further, revenue increased by 19 percent year on year, from Rs. 882 crore in Q4FY23 to Rs. 1,105 crore in Q4FY24.
Ajanta Pharma Ltd’s net profit decreased by 3 percent on a quarter-on-quarter basis, from Rs. 210 crore in Q3FY24 to Rs. 203 crore in Q4FY24. Further, net profit increased by 66 percent year on year from Rs. 122 crore in Q4FY23 to Rs. 203 crore in Q4FY24.
The company has a ground presence in each of these 30+ countries. Many of the company’s products are 1st to market and are leading in their subtherapeutic segments. This business contributes 71% of total revenue.
The company’s profitability measures show an incline in return on equity (RoE) from 17.35 percent in FY 21-22 to 22.87 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 21.21 percent to 29.95 percent. In contrast, the net profit margin (NPM) was 19.39 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promotor own 66.22 percent while Retail shareholders own a 7.76 percent stake in the company, and Foreign Institutional Investors own a 8.54 percent stake.
Ajanta Pharma Limited is an Indian specialized pharmaceutical firm. The company offers a wide range of specialized branded generic medications that address a variety of chronic and acute treatments. The company manufactures and sells both branded generic and generic medicinal items.
Written by:- Abhishek Singh
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