Shares of Ajanta Pharma are edging closer to record highs. Know why

Ajanta Pharma Ltd., a mid sized drugs major, inched lower from record highs on profit booking after the company reported quarterly earnings.

Ajanta Pharma said its first quarter net profit jumped 38 percent to 81.1 crore rupees compared with 58.72 crore rupees in the same quarter a year ago. Sales during April-June rose 18 percent to 340.6 crores versus 287.5 crores, the company said in a release to the exchanges.

Ajanta Pharma fell 11.65 rupees, or 0.7 percent, to 1,656 rupees on the National Stock Exchange where 1.70 lakh shares shares changed hands compared with a 5-day average of 1.79 lakh shares by 12:30 pm.

Ajanta Pharma' market capitalisation has leapt 190 percent in one year to 14,700 crore rupees as investors bought mid-sized pharma companies where the major percentage of sales and profit come from overseas shipments.

Ajanta Pharma trades at 17.6 times its book value of 95.52 rupees.

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