Fundamental

Ajanta Pharma



Company Overview

Ajanta Pharma (AJP) is a specialty pharmaceuticals company engaged in the development, manufacture and marketing of finished dosages. It started with repacking of generic products in 1973, and moved from OTC products to prescription-based products for the Indian market. It has established itself as a strong specialty player in the domestic market in Ophthalmology, Dermatology and Cardiology. In addition, it has strong presence into the international markets of Africa and Asia, and continues to build a strong foundation for the US market.

Outlook & Valuation

We believe that Ajanta Pharma’s long-term fundamentals continue to remain healthy driven by strong traction in the US business (post US FDA clearance to its Dahej unit) and above industry growth in domestic business. Its Sales, EBITDA and PAT witnessed 24%, 37% and 44% CAGR, respectively through FY12-17 owing to strong growth in domestic formulation business and healthy growth in exports (21% CAGR). We have a target of Rs 1500, valuing the stock at 25x FY19E EPS of Rs 60.

 


Tags: Fundamental PickAjanta Pharma


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