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INVESTMENT INSIGHTS

Check Before You Invest : Ajanta Pharma Ltd

BSE: 532331 NSE: AJANTPHARM ISIN: INE031B01049
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Ajanta Pharma Ltd belong to?
Ajanta Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Ajanta Pharma Ltd a good quality company?
Ajanta Pharma Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Ajanta Pharma Ltd undervalued or overvalued?
Ajanta Pharma Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ajanta Pharma Ltd a good buy now?
Ajanta Pharma Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ajanta Pharma Ltd?
Ajanta Pharma Ltd revenue growth is 10.4% for FY-2025 , which is below its 5 year CAGR of 12.4% , indicating slower growth.
Q.2 Gross Profit margin of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 15% for FY-2025 , which is below its 5 year median of 15.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.38% for FY-2025 , which is below its 5 year median of 27.93% indicating decreasing margins.
Q.4 Net Profit Margin of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Net Profit Margin is 19.8% for FY-2025 , is in line with with its 5 year median of 19.8%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 15 15.7
Operating Profit Margin 27.38 27.93
Net Profit Margin 19.8 19.8
Q.5 Return on Asset of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Return on Asset is 19.72%, which is above its 5 year historical median of 17.16%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Return on equity is 25.06% for FY-2025 , which is above its historical median of 23.38%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Return on capital employed is 32.87% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Cash conversion cycle is 30 days, below its historical median of 42 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.91 1.61
ROE 25.06 23.38
ROCE 32.87 32.2
Cash Conversion Cycle 30 days 42 days
Q.9 Debt to Equity ratio of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.15 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ajanta Pharma Ltd?
Ajanta Pharma Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ajanta Pharma Ltd?
Promoters hold 66.25% of the Ajanta Pharma Ltd, with 17.94% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ajanta Pharma Ltd vs industry peers?
Ajanta Pharma Ltd revenue CAGR is 12.43% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,648.1 137.1
Gross Profit 697.2 15.1
Operating Profit 1,260 16
Net Profit 920 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.91 0.8
ROE 25.06 8.91
ROCE 32.87 11.59
Cash Conversion Cycle (days) 30.49 76

Valuation & price assessment

Q.1 Stock return of Ajanta Pharma Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11% 19.4% 30% 3.5%
Q.3 Valuation ratios of Ajanta Pharma Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 34.83 27.70 40.28
Price to Book 7.7 5.06 2.77
Price to Sales 6.79 5.25 2.65
EV to EBITDA 23.83 16.41 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Pfizer
7. Astrazeneca Pharma I
8. Sai Life Sciences
9. Natco Pharma
10. Eris Lifesciences
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