The shares of this smallcap company jumped around 4 percent in Friday’s trading session after ICICI Prudential Mutual Fund bought a 2.25 percent stake via a bulk deal. On a YTD basis, the stock has delivered more than a 20 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 2,229 crores, the shares of Amrutanjan Health Care Ltd started Friday’s trading session on a higher note at Rs. 768 compared to its previous close of Rs. 748.10.
During the trading session, the shares hit a high of Rs. 778, gaining around 4 percent and are currently trading at Rs. 770 apiece.
What Happened:
According to the NSE bulk deal, one of the prominent mutual fund houses, ICICI Prudential Mutual Fund has bought 6.5 lakh equity shares, i.e., equivalent to 2.25 percent of paid-up equity in the pharmaceutical company at an average price of Rs 760 per share.
However, on the seller side, Nagesvaramma Private Trust sold a 2.88 percent stake in Amrutanjan Health Care for an average price of Rs 760.08.
Also Read: Ashish Kacholia stock jumps after receiving orders worth ₹ 35 Cr from Saudi Arabia
Financials:
Looking at the company’s financial statements, the revenue decreased by around 34 percent from Rs. 127.06 crores during the March quarter to Rs. 83.74 crores in the June quarter. On the other hand, the net profits declined by 66 percent from Rs. 13.66 crores to Rs. 4.62 crores during the same period.
Market Postion:
Amrutanjan Health Care holds the prestigious position of being the foremost choice in the Modern Trade Head category, commanding an impressive volume market share of 41 per cent.
Furthermore, Furthermore, in the realm of pain management, particularly in products like balms, sprays, and ointments, Amrutanjan holds a commanding market share of 43.3 percent.
Amrutanjan Health Care Ltd (AHCL) introduced roll-on format products known as “Roll-Ons” in their product line. These roll-on products, such as the Amrutanjan Headache Faster Relaxation Roll-On and the Amrutanjan Back Pain Roll-On, will have a significant market share of 71 percent within this specific format.
Future Outlook:
As per reports, the company has ambitious plans to achieve a revenue target of Rs. 1,000 crore by FY28, focusing on expanding its core categories such as pain management, women’s hygiene, and rehydration products.
Additionally, Amrutanjan plans to enhance market penetration through brand investment and explore new markets. The company is also considering inorganic growth opportunities to bolster its presence in health and wellness.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 16.77 percent and a return on capital employed (RoCE) of 23.87 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 9.43 percent.
Company Profile:
Amrutanjan Health Care Ltd is a prominent pharmaceutical company specializing in ayurvedic products and health care solutions.
Its diverse product portfolio includes pain management items like balms and sprays, congestion relief products such as cough syrups, women’s hygiene products like sanitary napkins, and fruit-based beverages under the Fruitnik brand.
Also Read: Stock under ₹ 60 jumps 16% after signing contract worth ₹ 115.13 Cr for solar power plant
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
