 "Photo: Bloomberg")
Shares of Ajanta Pharma hit a record high of Rs 2,531.95 as they surged 13 per cent on the BSE in Friday's intraday trade after the pharmaceutical firm reported solid March quarter earnings with earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin expanding by ~700bp year-on-year (Y-o-Y) to 26.4 per cent due to lower employee costs and other expenses.
Meanwhile, the company has also fixed May 30, 2024 as the record date to determine the entitlement and names of equity shareholders, who shall be entitled to participate in the proposed offer for Buyback of up to 1.03 million equity shares of the company at a price of Rs 2,770 per equity share.
At 09:23 AM, the stock was trading 11 per cent higher at Rs 2,474, as compared to 0.53 per cent rise in the S&P BSE Sensex. It surpassed its previous high of Rs 2,355.05, touched on January 4.
In Q4FY24, the company's profit after tax (PAT) jumped 66 per cent Y-o-Y to Rs 203 crore. Revenue grew 20 per cent Y-o-Y to Rs 1,054 crore.
Ajanta Pharma guided for low-teens Y-o-Y growth in revenue for FY25. Particularly, US generics revenue, it said, is expected to grow in mid-single digits Y-o-Y in FY25. The company expects to outperform IPM by 200-300bp in FY25, and aims to sustain Ebitda margin at 28 per cent in FY25.
"Ajanta Pharma delivered in-line sales in Q4FY24. However, Ebitda and PAT came in lower than our expectations, due to higher opex and higher tax outgo," Motilal Oswal Financial Services (MOFSL) said.
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However, the company continued to outperform the industry in domestic formulation (DF) and Asia market. The performance is expected to improve in the Africa branded generics market going forward, the brokerage firm added.
"We expect a 17 per cent earnings CAGR over FY24-26, backed by a 12 per cent/15 per cent sales CAGR in DF/Asia segment and a 150bp margin expansion. With new launches, MR addition and increased market share in existing products, Ajanta Pharma remains in good stead to outperform in the branded generics market (70 per cent of FY24 sales). The company continues to build the ANDA pipeline for the US market and implement efforts toward consistent compliance," MOFSL said.
