Shares of Ajanta Pharma shed 2 per cent to hit a low of Rs 1,190 on the BSE in Thursday’s intra-day trade, declining 3 per cent in the past two trading days, after the stock turned ex-date for 1:2 bonus share on Wednesday, June 22, 2022. The company had fixed June 23, 2022 as the record date for the bonus issue. In comparison, the S&P BSE Sensex was up 0.59 per cent at 52,130 points at 12:06 PM.
Ajanta Pharma made an announcement about bonus shares on May 10, 2022, for issue of bonus equity shares in the proportion of one equity share of Rs 2 each for every two equity shares of Rs 2 each.
The company is a focused player in branded drugs, which constitutes around 72 per cent of overall sales, spread across geographies including India. As of FY22, domestic formulations ratio was at 70:30 among overall exports. Among exports, Asia accounts for around 35 per cent of export formulations, Africa 34 per cent and US 30 per cent. The company also participates in anti-malarial tenders in Africa (included in Africa).
In the past one month, the stock has outperformed the market by gaining 4 per cent as against 4 per cent decline in the S&P BSE Sensex. However, over the last six months, it was slipped 13 per cent as compared to 9 per cent fall in the benchmark index.
Analysts at ICICI Securities have changed their rating from ‘BUY’ to ‘HOLD’ due to the recent run-up in the stock. “We value Ajanta Pharma at Rs 1,305 i.e. 20x FY24E EPS of Rs 65.2,” the brokerage firm said in a company update.
Maximum number of first time launches with focus on new drug delivery system (NDDS); in emerging markets, front-end marketing for direct interaction with doctors; and calculated focus, healthy margins, return profile and lighter balance sheet are some key differentiators for Ajanta. Margins are likely to improve amid operational leverage and incremental focus on branded business, are key triggers for future price performance, the brokerage firm said.
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