Promoter sells Rs 1,024 crore worth of Ajanta Pharma shares in block deal to Kotak MF and ABSL MF

A promoter entity of Ajanta Pharma sold shares worth over Rs 1,024 crore through a block deal on Tuesday, with domestic mutual funds emerging as the buyers.

According to NSE block deal data, Ravi Agrawal Trust sold 34.5 lakh shares of Ajanta Pharma at Rs 2,968 per share.

The transaction was valued at about Rs 1,024 crore.The shares were picked up by two domestic fund houses.

Kotak Mahindra Mutual Fund acquired 21.02 lakh shares, while Aditya Birla Sun Life Mutual Fund purchased 13.48 lakh shares.

Both transactions were executed at the same price of Rs 2,968 per share.Ajanta Pharma is a specialty pharmaceutical company with a presence across branded generics, emerging markets and select developed markets.

The company has built a strong franchise in therapeutic segments such as ophthalmology, cardiology, dermatology and pain management, while also expanding its footprint in international markets.The company has been one of the stronger performers in the pharmaceutical space, benefiting from steady earnings growth, healthy margins and a robust balance sheet.

Investors have also favoured the stock due to its focus on branded formulations and relatively limited exposure to pricing pressures in the US generics market.Ajanta Pharma reported good fourth quarter results, with revenue and EBITDA coming in 1-3%, ahead of analysts estimates.

PAT was 23% higher than the views, helped by higher Other income and a lower tax rate.

US generics business sustained robust growth momentum, up 47% YoY in USD terms"We raise our FY27E-FY28E core earnings estimates by 2%.

AJP trades at 31.2x FY27E core P/E.

We retain our target price at Rs 3,115 based on 29.9x FY28E core P/E plus cash per share.

We retain our Accumulate rating.

Geopolitical disruptions to the business and a spike in raw materials price & freight cost are key risks to our call.

We introduce FY29 estimates," Elara Capital said post the earnings. ...