Ajanta Pharma share price has delivered 8,122% returns in the last 10 years. Ajanta Pharma share price which stood at Rs 12.41 on October 30, 2009 has risen to Rs 1,020 during the period. An investment of Rs 1 lakh in this stock in 2009 would now be over Rs 82.19 lakh.
Ajanta Pharma share price closed 0.53% or 5 points lower at Rs 1,020 on BSE today. The stock has lost 14% since the beginning of this year but gained 1% during the last one year. In comparison, the benchmark Sensex gained 18% during the last one year and rose11% since the beginning of this year.
The pharma stock has outperformed its peers during the last 10 years. While Ipca Laboratories share has gained 438%, Natco Pharma has clocked 2,571% rise in its share price during the period. Among other pharma stocks, Zydus Wellness, Glenmark Pharma, Jubilant LifeScience and Procter and Gamble Health rose 919%, 37%, 126% and 816%, respectively.
Ajanta Pharma will report its earnings for the September quarter on November 5.
In Q1 of the current fiscal, the company posted a 8.5 percent rise in net profit to Rs 115 crore and the revenue increased 19.7 percent to Rs 612 crore.
The firm clocked 25 percent rise in exports, while US generic sales rose 67 percent in Q1. Earnings before interest tax depreciation and amortisation (EBITDA) rose 7% to Rs 168 crore in Q1 on an year on year basis.
The mid cap stock has a price to earnings P/E ratio of 24.42 compared to industry PE of 28.94 indicating the scrip is under-valued.
Price-to-book value of the firm stood at a healthy 3.99 for fiscal ended March 2019. Price to book value ratio is calculated by dividing a company's stock price by its book value per share. Book value per share is the difference between assets and liabilities of the firm.
If a stock's book value per share is less than one, then it means it trades at less than the value of its assets.
The robust rise in the stock can be attributed to strong financial performance of the firm.
For fiscal ended March 2019, the firm logged Rs 2,055.37 crore in sales compared to Rs 407.72 crore for fiscal ended March 2010. Net profit rose over 10 times during the period. For fiscal ended March 2019, the firm logged Rs 386.97 crore in net profit compared to a profit of Rs 34 crore for fiscal ended March 2010.
Basic earnings per share rose to Rs 43.97 in last fiscal compared to Rs 29.04 for fiscal ended March 2010. Return on capital employed rose to 22.23% in last fiscal compared to 9.99% for March 2010 fiscal.
Debt to equity ratio reduced to 0.02 in last fiscal compared to 1.23 for fiscal ended March 2010.