AJANTA SOYA SHARE: TARGET ACHIEVED!!!

“In the stock market, a good nervous system is more important than a good head”-Warren Buffet. 

This quote is truly inspiring and builds confidence in people who are not from finance background.  

Let’s do a root cause analysis related to Ajanta Soya share and try to understand how did it achieve the target we had predicted. 

By the way, the share had zoomed till ₹ 242 which is target achievement of 105% in a span of 72 trading sessions. 

How did the business of Ajanta Soya share grow for achieving the desired target? 

In the annual report of FY 21 the company’s management made a statement that the continued growth of Indian markets has given Ajanta Soya a steady growth and superb profits. There is a huge opportunity as rural India is explored more by the modern retail philosophy. 

Management is very firm that they would tackle any competition from Global and Indian market and excel in their respective domain. 

From the business front there was no major news related to Ajanta Soya share in recent times. 

On 23^rd Nov 2021, Ace Investor Dolly Khanna bought 140,000 shares of Ajanta Soya at ₹ 147.7/ share through a bulk deal. 

Let’s check how did Ajanta Soya share perform financially. 

QUARTERLY RESULTS:     

Figures in Rs. Crores 

Quarterly Results	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21	Jun-21	Sep-21
Sales	175	196	201	190	240	240	261	337	370
Expenses	168	192	198	189	231	230	245	323	355
Operating Profit	7	4	3	1	9	11	16	13	15
OPM %	4%	2%	2%	1%	4%	4%	6%	4%	4%
Other Income	0	1	0	1	2	2	3	0	3
Interest	1	1	1	1	1	1	0	0	0
Depreciation	0	0	0	0	0	0	0	0	0
Profit before tax	6	3	2	1	9	12	18	13	17
Tax %	20%	35%	8%	54%	21%	34%	48%	34%	-12%
Net Profit	5	2	2	1	7	8	9	9	19
EPS in Rs	2.83	1.37	1.05	0.42	4.54	4.76	5.88	5.39	11.6

For the quarter ended 30-09-2021, the company reported a sale of ₹ 370 Cr which is an increase of 35% from the sales registered in the year ago period. 

Expense has increased from the previous quarter and the sales number indicate that Ajanta Soya share is using this expense for increasing the sales. 

In quarter ended 30-09-21, the net profit of Ajanta Soya share has increased from its previous quarter which is a great symbol of growth. There has been an increase of 53% net profit from the previous quarter. 

These were some of the highlights in the quarterly results. 

BALANCE SHEET: 

Reserves have increased exponentially and there is a great interest shown by the investors in Ajanta Soya share. 

In the quarter ended 30-09-21, the company has reduced its debt and are on the verge of zero debt. 

Figures in Rs. Crores 

Balance Sheet	Mar-14	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19	Mar-20	Mar-21	Sep-21
Share Capital	16	16	16	16	16	16	16	16	16
Reserves	12	11	16	25	29	28	38	63	91
Borrowings	3	16	16	1	30	24	3	3	1
Other Liabilities	64	49	59	70	42	87	60	78	124
Total Liabilities	95	92	107	112	117	155	117	160	232
Fixed Assets	14	10	10	10	32	32	31	35	34
CWIP	0	0	0	0	0	0	1	1	1
Investments	11	15	22	24	5	5	5	18	55
Other Assets	70	67	76	79	80	118	81	106	142
Total Assets	95	92	107	112	117	155	117	160	232

SHARE HOLDING SYNOPSIS 

Share Holding	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21	Jun-21	Sep-21
Promoters	46.85	46.85	46.85	46.85	46.85	46.85	46.85	46.85	46.85
Public	53.15	53.14	53.15	53.15	53.15	53.15	53.15	53.15	53.15

Promoters have maintained their position in this stock with a whopping 46.85%. 

Public have a 53.15% share in this stock. 

Let’s figure out how the price action worked for Ajanta Soya share in 73 trading sessions which helped the stock to achieve 105%. 

In the previous analysis, we did highlight the formation of bullish flag pattern.   

Click here for previous analysis on Ajanta Soya share. 

Once the share price broke the rectangular channel, a massive rally was seen which ultimately helped the Ajanta Soya share to reach its all-time high. 

DISCLAIMER