Check Before You Invest : Ajanta Pharma Ltd

Q: 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: Is Ajanta Pharma Ltd a good quality company?

Ajanta Pharma Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ajanta Pharma Ltd undervalued or overvalued?

Ajanta Pharma Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 35.87, Historic Median: 33.68. Price to Book, Current: 8.37, Historic Median: 7.61. Price to Sales, Current: 6.95, Historic Median: 6.69. EV to EBITDA, Current: 24.25, Historic Median: 23.48

Q: 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

Q: 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 12.43%, indicating slower growth.

Q: 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 in line with its 5-year median of 15.7%, indicating stable margins.

Q: 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 in line with its 5-year median of 27.93% indicating stable margins.

Q: Net Profit Margin of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Net Profit Margin is 19.8% for FY-2025, is in line with its 5-year median of 19.8%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 15, Historic Median: 15.7. Operating Profit Margin (%), Current: 27.38, Historic Median: 27.93. Net Profit Margin (%), Current: 19.8, Historic Median: 19.8

Q: 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: Return on capital employed (ROCE) of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Return on capital employed is 32.87% for FY-2025, which is in line with its 5-year historical median of 32.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Ajanta Pharma Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ajanta Pharma Ltd undervalued or overvalued?

Ajanta Pharma Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	35.87	33.68
Price to Book	8.37	7.61
Price to Sales	6.95	6.69
EV to EBITDA	24.25	23.48

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 12.43%, 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 in line with its 5-year median of 15.7%, indicating stable 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 in line with its 5-year median of 27.93% indicating stable 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 its 5-year median of 19.8%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	15	15.7
Operating Profit Margin (%)	27.38	27.93
Net Profit Margin (%)	19.8	19.8

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Return on capital employed is 32.87% for FY-2025, which is in line with its 5-year historical median of 32.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Return on equity is 25.06% for FY-2025, which is above its 5-year historical median of 23.38%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Cash conversion cycle is 30 days, below its 5-year historical median of 42 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.91	1.61
ROE (%)	25.06	23.38
ROCE (%)	32.87	32.2
Cash Conversion Cycle	30 days	42 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ajanta Pharma Ltd?

Ajanta Pharma Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.14, 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

D: Promoter shareholding and pledge status of Ajanta Pharma Ltd?

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)

E: How does Ajanta Pharma Ltd performance compare with that of its Peers?

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 5.52%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.4	5.5
Gross Profit Growth (%)	6.7	13.9
Operating Profit Growth (%)	7.5	11.6
Net Profit Growth (%)	12.8	12.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.91	0.79
ROE (%)	25.06	9.17
ROCE (%)	32.87	11.52
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 11.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	11.4%	17.6%	33.4%	19.4%

Q.2 Valuation ratios of Ajanta Pharma Ltd vs historical?

The current P/E ratio of 35.87 is higher than its historical median of 33.68, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	35.87	33.68	31.09
Price to Book	8.37	7.61	2.85
Price to Sales	6.95	6.69	2.82
EV to EBITDA	24.25	23.48	15.99

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Check Before You Invest : Ajanta Pharma Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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