Fundamental Analysis

AMRUTANJAN HEALTH CARE LTD.

Ticker : 590006 
BUY : Rs 600 
Target : Rs 670

Amrutanjan Health Care Limited is engaged in the manufacturing of Ayurvedic pain balms and beverages. The company specialises in Ayurvedic balm for headaches, cold & cough. The segments of the company include over the counter (OTC) products, beverages, chemicals, and others. On the standalone quarterly front, the company recorded net sales of Rs 100.10 crore for Q3FY21, which is an increase of 20.96 per cent from its net sales of Rs 82.75 crore reported for Q3FY20. The operating profit jumped substantially to Rs 29.03 crore in Q3FY21 from Rs 13.87 crore posted in Q3FY20. The net profit was reported at Rs 20.98 crore in Q3FY21 from Rs 9.49 crore in Q3FY21, recording handsome gains. The demand for its core products namely balms & women's hygiene (Comfy) also witnessed a positive trend. The company is also focussing on expanding and strengthening its beverage business. Hence, we recommend BUY.