Ajanta Pharma Share Target; Yes Securities Sees 42% Upside In Pharma Stock After Bonus Share Announcement

For the past year, Ajanta Pharma’s stock has been under sell-off pressure, with any advance in the pharma stock being viewed as a sell-on-rise opportunity. Ajanta Pharma’s stock has dropped roughly 25% year to date, from around 2214 to 1680 per share.

Also Read :- IRCTC share Target; Stock Price Fall 47% from 52-week high. What Should Investors Do?

Yes Securities, on the other hand, believes the company will emerge from its consolidation phase and provide significant long-term potential. The firm expects Ajanta Pharma’s stock price to rise to ₹2350 a share, a 42 percent increase from its current market price of ₹1680.

Yes Securities research paper highlights the reasons for being positive on Ajanta Pharma shares “In FY23, Ajanta Pharma expects a gross margin of 75 percent, comparable to FY22. Management announced a Rs2 billion increase in capex, as well as expenditures in advertising, product registration, and R&D.

As a result, EBIDTA growth will most likely mirror revenue growth in the current fiscal year. With considerable R&D for India/emerging markets, and projected respite from US price erosion, we believe gross margins have bottomed out, helped by price increases in non-NLEM portfolio domestic business.

Also Read :- Rakesh Jhunjhunwala Portfolio Stock Tanks 30% From 52-Week High

Increased opex investment guidance cuts FY24 margin and EPS expectations by 200bps and 9%, respectively “tively.”

Yes Securities report on its recommendation to positional investors in Ajanta Pharma shares reads, “Reduced FY24 estimates resulted in a TP fall to 2,350, however BUY remains intact at 26x PE. A successful FDA inspection would be a key trigger, allowing numerous significant items to be approved.”

Ajanta Pharma has issued a bonus issuance with a 1:2 ratio. In an exchange message, the pharma business announced of its Board of Directors decision, noting,

Also Read :- Cipla Share Target; Share Price Falls After Earnings, What Should Investors Do Now?

“We thus tell you that at the Board meeting on Tuesday, May 10th 2022, the Board authorised, among other things, the issuing of bonus shares in the ratio of 1:2, i.e. one new fully paid-up equity share of Rs. 2/- to be issued for every two equity shares held, subject to shareholder approval.”

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
Get Latest Daily Stock Market News & Economy News Updates, Stock Picks & Analysis, IPO, Earnings, Dividend News Alerts. Get Quick Updates On Share Price India News Twitter & Facebook Handle.
We will be happy to hear your thoughts

Leave a reply

Share Price India News
Enable registration in settings - general