Amrutanjan Health Care Ltd (AHCL), a renowned manufacturer of ayurvedic balm for pain management, has experienced a significant surge in its stock price following the approval of a buyback plan by the company’s board. The stock, traded under the symbol AMRUTANJAN on the BSE (Bombay Stock Exchange), soared by Rs 83.6 or 12.5 percent, reaching Rs 752.8 per share after the announcement.
Established in 1893, Amrutanjan Health Care has a rich legacy of over 120 years and is currently managed by the third generation of promoters. The company specializes in over-the-counter (OTC) products, particularly in the segments of pain management, women’s hygiene, and packaged fruit juice drinks.
As of June 30, 2023, the market capitalization of Amrutanjan Health Care stands at approximately ₹2,201 crore, reflecting the confidence of investors in the company’s growth potential. The stock’s price-to-earnings (P/E) ratio is 55.3, indicative of favorable market sentiment.
The heightened trading activity surrounding Amrutanjan Health shares underscores the market’s enthusiasm. By 11:15 am, the stock retained a significant portion of its intraday gains, trading at Rs 752.6 apiece on the BSE, marking a 12.5 percent increase for the day. Notably, the trading volume for the day reached 97,000 shares, far surpassing the daily average of 13,000 shares witnessed over the past two weeks, according to provisional exchange data.
Over the past month, the stock has demonstrated impressive growth, with its value rising by nearly 25 percent. This remarkable performance outshines the three percent increase observed in the Nifty benchmark during the same period.
The approval of the buyback plan by Amrutanjan Health Care’s board signifies the company’s confidence in its financial strength and future prospects. A buyback enables a company to repurchase its own shares from the market, reducing the number of outstanding shares and potentially enhancing shareholder value.
The surge in the stock price reflects investors’ positive response to the buyback plan, demonstrating their growing confidence in Amrutanjan Health Care’s ability to deliver sustainable growth. As the company moves forward with its buyback program, stakeholders will closely monitor its progress and evaluate the impact on shareholder value.
Amrutanjan Health Care continues to solidify its position in the market as a reputable manufacturer of quality healthcare products. With its rich heritage and commitment to innovation, the company is well-positioned to capitalize on emerging opportunities and deliver value to its shareholders.
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