Shares of this Pharma stock jumped up to 12 percent today after announcing results for the quarter ending June 2023. Year-To-Date, the scrip has soared close to 40 percent from Rs 1,208 to the current price level. The company has a market cap of Rs 21,000 crores.
The stocks of Ajanta Pharma Limited started their trading session at Rs 1,697.95 and currently trade at Rs 1,669. The scrip hit its 52-week high mark at a price of Rs 1,735 apiece.
The stock price movements were observed today after the company, in a regulatory filing with the BSE dated 27th July 2023, announced the financial results for Q1FY23-24.
Moreover, the company’s Board approved the payment of the first interim dividend for FY23-24 of Rs 25 per equity share, i.e., a regular dividend of Rs 10 per share and Rs 15 special dividend on the commemoration of 50 years of the company.
As compared to the share’s Face Value of Rs 2 each, the total dividend payment exhibits a payout of 1,250 percent. The record date for the dividend payment is fixed to be 4th August 2023.
The company, on a QoQ basis, showcased decent growth in the operating revenues as well as net profits with the former increasing from Rs 882 crores during Q4FY22-23 to Rs 1,021 crores during Q1FY23-24 indicating an increase of 16 percent, and, the net profits moving from Rs 122 crores to Rs 208 crores representing an increase of around 70 percent.
Moreover, the yearly movements in the metrics mentioned above have shown positive movements with the operating revenues moving up from Rs 951 crores during Q1FY22-23 to Rs 1,021 crores during Q1FY23-24, and, the net profits increasing from Rs 175 crores to Rs 208 crores.
Due to cost pressures, the basic profitability ratios of the company, in the past couple of years, took a hit with the return on equity (RoE) declining from 21.83 percent during FY21-22 to 17.35 percent in FY22-23, and, the return on capital employed (RoCE) moved down from 26.98 percent to 21.21 percent keeping the timeframe the same.
Ajanta Pharma Limited is a drug manufacturing company focusing on specialty pharmaceutical products. The company develops formulations in various dosages such as creams, tablets, lotions, and many more. With a global presence, the company generates a majority of its revenue from operations in India as well as from Africa.
Written by Amit Madnani
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