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 23rd 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 
Interest 
Depreciation 
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 16 16 30 24 
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 
Investments 11 15 22 24 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

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