After falling consistently for three years in a row, shares of Ajanta Pharma have surged over 44 percent this year so far on the back of better earnings growth.

Share Market Live

NSE

On February 13, the stock touched a 52-week high of Rs 1,483.40 apiece on the BSE.

Ajanta Pharma shares fell more than 17 percent in 2019. The scrip declined 20 percent in 2018 and 18 percent in 2017.

Ajanta Pharma reported robust earnings for the third quarter of fiscal 2020. Net Profit of the company in Q3FY20 surged 60.76 percent to Rs 107.55 crore from Rs 66.90 crore in Q3FY19.

Net Sales were at Rs 651.21 crore during the quarter, up 34.24 percent from Rs 485.11 crore, YoY.

“After two years of earnings decline, Ajanta Pharma’s earnings growth is back on track, led by superior execution in India/Asia/Africa branded generics segment that accounts for 67 percent of sales and healthy traction in new ANDA launches. Further, new orders from institutional agencies should also support sales as well as profitability,” Motilal Oswal Securities said in a report.

The operating performance of the company also improved as EBITDA rose 79.56 percent to Rs 200.61 crore in the quarter ended December 2019 from Rs 111.72 crore in the year-ago quarter. Margin expanded to 28.6 percent versus 22.1 percent, YoY.

Ajanta Pharma EPS has increased to Rs 12.33 in December 2019 from Rs 7.60 in December 2018.

On Friday, shares of Ajanta Pharma ended 2.64 percent lower at Rs 1,416.40 on the BSE.

First Published:Feb 14, 2020 3:34 PM IST