A promoter entity of Ajanta Pharma executed a significant block deal on Tuesday, selling 34.5 lakh shares worth over ₹1,024 crore at ₹2,968 per share. According to NSE block deal data, the transaction was executed by Ravi Agrawal Trust, with domestic mutual funds emerging as the primary buyers. Kotak Mahindra Mutual Fund acquired 21.02 lakh shares (equivalent to 1.7% stake) worth ₹624 crore while Aditya Birla Sun Life Mutual Fund purchased 13.48 lakh shares (about 1.1% equity) for nearly ₹400 crore, both transactions executed at the same price of ₹2,968 per share. The transaction marks a transfer of shares from a promoter-linked entity to large institutional investors, with mutual funds increasing their exposure to the pharmaceutical company. Following the block deal, Ajanta Pharma shares rose 3.8% to a high of ₹3,085 compared to the previous closing price of ₹2,970, reflecting strong market confidence in the transaction.
Recent market data reveals a significant shift in mutual fund behavior, with 23 midcap stocks seeing holdings reduced during the March 2026 quarter after two consecutive quarters of accumulation from June to September 2025, and again from September to December 2025. According to ACE Equity analysis, 13 midcap stocks have declined more than 10% in CY26, with some falling as much as 30%, indicating widespread selling pressure across the midcap segment. This pattern suggests that informed institutional investors are reassessing their positions, with mutual funds typically basing decisions on in-depth research and long-term fundamentals. The timing of Ajanta Pharma's block deal coincides with this broader trend of fund selling, though the company's strong financial performance and robust US generics growth may have supported the transaction.
Ajanta Pharma has demonstrated robust financial performance with revenue and EBITDA coming in 1-3% ahead of analyst estimates in the fourth quarter. The company's PAT was 23% higher than analyst views, supported by higher other income and a lower tax rate. The US generics business sustained robust growth momentum, up 47% YoY in USD terms, contributing to the company's strong earnings trajectory.
Ajanta Pharma operates as a specialty pharmaceutical company with presence across branded generics, emerging markets and select developed markets. The company has built a strong franchise in therapeutic segments including ophthalmology, cardiology, dermatology and pain management, while expanding its international footprint. According to Elara Capital, the company trades at 31.2x FY27E core P/E with a target price of ₹3,115, maintaining an 'Accumulate' rating despite geopolitical disruptions and raw material cost pressures being key risks to the call.
