@hitesh2710 Please let me know if my reading of inverted head and shoulder pattern on ajanta is correct.
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pikrohit,
It is better visualised on weekly line chart.height of pattern is around rs 150. A similar pattern also is present in alembic weekly line chart though the height of the head is much smaller.
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It is raining dividends.
Ajanta Pharma Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 09, 2016, inter alia, to consider and approve declaration of interim dividend for financial year 2015-16.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=75b04c55-d500-43dc-86ee-d152d18e6a59
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Breakout from HnS requires high volume compared to the volume during HNS formation. In this case, volume has not risen on breakout.
Hi,
Dont consider any stock chart in isolation. Always, relate it to the Nifty levels. When Nifty is falling, no stock pattern can succeed. For your information, Traders and operators use FIBO levels rather than the charts.
There is a W pattern with Nifty @ 7500. If 7500 resistance holds, all stock patterns will fail.
Always align your long or short in any stock with Nifty as it is a mother of all charts.
@hitesh2710 thanks for comments
@IshankâŚI thought that the volume at breakout candle should be higher than the previous volume. I checked that this holds true for daily charts but not weekly chart
Ajanta get approval for gAxert (almotriptan malate). Link - http://www.accessdata.fda.gov/scripts/cder/drugsatfda/index.cfm?fuseaction=Search.DrugDetails
Almotriptan is prescribed to treat the acute headache phase of migraine attacks. This is the first approval for a molecule for Ajanta where the market is not crowded with just 2 other generic players in the market currently including Teva and Mylan. However, the market size of the drug is small at around USD 31 million (source - http://www.businesswire.com/news/home/20150708006211/en/Teva-Receive-Approval-Launch-Generic-AxertÂŽ-Tablets).
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Ajanta declared 400% dividend(Rs.8)
http://www.bseindia.com/corporates/ann.aspx?scrip=532331&dur=A&expandable=0
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March 24, 2016
Ajanta Pharma USA Inc., a wholly owned subsidiary of Ajanta Pharma Ltd, announces today the launch of Levetiracetam Immediate-Release Tablets (250mg, 500mg, 750mg, 1000mg), a bioequivalent generic version of Keppra in the US market.
Levetiracetam is used for the treatment of various types of epilepsy.
Ajanta Pharma announced its Q4FY16 results
https://www1.nseindia.com/corporate/AJANTPHARM_press_29042016132216.zip
Revenue and PBT growth seems to have slowed down. PAT looks good due to lower tax this quarter.
Does anyone know the reasons for lower tax? New plants will be commercialized in 2017 only.
Has the US revenues gone up coz they had few products launch last quarter
US revenues is too small to bother. Just 5crs in 4Q and 14crs in FY16.
Receivables have gone up somewhat from 63 days in FY15 to 78 days. Stock at 33x FY16 is not cheap. PBT growth in 4Q is just 6%. The YoY growth in PAT in 4Q is because of lower taxes
Q4FY16 Investor presentation
http://www.ajantapharma.com/AdminData/InvesterPresentation/InvestorPresentation-Q4FY2015-2016.pdf
Overall doesnât look like a good quarter
I used the rally to exit from Ajanta. While the company is still a great one to own, from valuation perspective I am a bit hesitant paying the 36x TTM earnings, especially with margins not showing any further expansion. Revenue growth of 15%-20% does not justify 36x TTM earnings.
All said and done, Ajanta is not the only one. Market seems frothy with respect to high quality, growing companies. I prefer missing out on 20-25% returns than staying put in this frothy situation.
@hitesh2710 Sir, Can you check if Ajanta has formed Flag pattern on weekly charts?
Targets mentioned
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hi
I also had marked a similar pattern in my charts but looking at
fundamentals it seems it would take some more time and even better results
to get there.
And since its a longish term pattern it could remain rangebound before
taking off.
Ideal flags happen halfway in an uptrend.
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