Midcap Pharma player Ajanta Pharma’s shares witnessed a robust surge of nearly 9 percent, reaching a fresh 52-week high of ₹1,735.00 during the morning trade on the NSE on Friday, July 28. This surge came just a day after the company released its financial results for the June quarter. The stock closed at Rs.1615.75.
Over the past year, Ajanta Pharma’s stock has exhibited remarkable growth, gaining approximately 31 percent.
For Q1FY24, Ajanta Pharma reported commendable financial figures, with revenue from operations amounting to ₹1,021 crore and EBITDA reaching ₹271 crore. The company’s Profit After Tax (PAT) for this quarter stood at ₹208 crore, showing a notable improvement from ₹175 crore in the corresponding period.
In response to the June quarter results, several brokerage firms expressed optimism about Ajanta Pharma’s future prospects and predicted a significant upside in the stock’s price going forward.
Motilal Oswal Financial Services, one of the brokerage firms, maintained a ‘buy’ call on the stock with a target price set at ₹1,800, citing a positive earnings outlook and attractive valuation.
Similarly, ICICI Direct, another brokerage firm, also recommended a ‘buy’ call on the stock, projecting a target price of ₹1,950.
It’s worth noting that the brokerage firm highlighted Ajanta Pharma’s increased capital allocation towards the branded generics segment, which accounted for 72 percent of the company’s revenues. This strategic move may have contributed to the positive sentiment surrounding the stock.