With a market capitalization of ₹ 15331 crores, Ajanta Pharma is a small-cap pharmaceutical company that is engaged in the development, manufacturing and marketing of speciality pharmaceutical quality finished dosages. Its shares were trading at ₹ 1195 levels on Friday.
The company’s board has approved the proposal of a buy-back of 22,10,500 fully paid-up equity shares having a face value of ₹ 2 each at ₹ 1425 apiece. This means that they will be buying the shares at a premium of ₹ 230 per share. This takes the value to approximately ₹ 315 crores.
The board has further considered and approved the record date as Friday, March 24, 2023, for the purpose of determining the entitlement and names of equity shareholders who shall be participating in the buyback.
Ajanta Pharma has an ideal return on equity of 22.77% and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio (P/E) of 24.92, which is slightly lower than the industry P/E of 25.86, indicating that the stock might be undervalued as compared to its peers. Its promoters hold a 66.11% stake in it.
Written by Simran Bafna
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