Multiabagger stock return: Today we are telling you about a stock that has made its investors millionaires. This share is- Ajanta Pharma. Ajanta Pharma shares have given stellar returns of more than 55,336% to its investors over a long period. Now today on Tuesday, the company has announced to give bonus shares. Ajanta Pharma on Tuesday announced that its Board of Directors in its meeting held today has approved issuance of Bonus Equity Shares in the ratio of 1:2. This is subject to the approval of the shareholders of the company. Shares of Ajanta Pharma closed nearly 4% lower at Rs 1,652.30 on the BSE.
Investors became millionaires in 19 years
Shares of Ajanta Pharma were at the level of Rs 2.98 per share on NSE on 28 March 2003, which has now crossed 1600 mark. That is, the stock of this pharma company has given a return of about 55336.24% during this period. That is, if an investor had invested one lakh rupees in this stock in 2003 and had kept the investment till now, he would have made a profit of Rs 5.54 crore today.
Also read- 167% return in 22 days: 7 rupees share became ₹ 21, competition to buy stock as soon as Adani’s name comes
Know what the company said?
The company said that the bonus share issue will be out of the free reserves of the company till March 31, 2022. Bonus shares are fully paid-up additional shares issued by the company to its existing shareholders. Ajanta Pharma’s revenue from operations of the company in the fourth quarter (Q4FY22) stood at ₹870 crore, up 15% as against ₹757 crore in the same quarter last year. However, its net profit year-on-year (YoY) declined slightly to ₹151 crore from ₹159 crore.
Also read- Adani and Jindal face to face to buy the business of this giant company, people are selling shares
What is Bonus Share?
Let us tell you that when a company gets additional profit from its business, then the company reserves a part of that profit capital in its Reserve and Surplus and in future, out of Reserve and Surplus, the company issues additional shares to its investors. Which is called Bonus Share.