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Ajanta Pharma Ltd Stock Analysis

Mid Cap
Evaluated by 3968 users | BSE: 532331 | NSE: AJANTPHARM |
Pharmaceuticals & Drugs

Ajanta Pharma is established in 1973. Committed to 'Serve Health Care Needs Worldwide', the company produces a comprehensive range of specialty products targeting different therapeutic segments for treatment of patients, customised to each market it...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ajanta Pharma Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.83%19.96%24.26%38.32%38.64%37.93%35.73%25.09%17.53%17.14%
Value Creation Index -0.050.380.671.641.661.621.460.790.250.22
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4996779311,2081,4741,7341,9832,1262,0552,588
Y-o-Y Gr. Rt.-35.8%37.4%29.8%22%17.7%14.4%7.2%-3.3%25.9%
Adjusted EPS (Rs.) 5.129.1812.4926.3835.546.2957.5551.4543.3647.43
Y-o-Y Gr. Rt.-79.3%36.1%111.2%34.6%30.4%24.3%-10.6%-15.7%9.4%
Book Value per Share (Rs.) 26.0533.9244.7367.4295.57135.31178.14231.78257.19297.8
Adjusted Net Profit 44.980.6110232312411506453378414
Net Op. Cash Flow (Rs. Cr.) 95.470.4234212279326609281375457
Debt to Cash Flow from Ops 22.820.530.610.260.2500.010.10.1
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ajanta Pharma Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 20.1%11.9%9.3%25.9%
Adjusted EPS 28.1%6%-6.2%9.4%
Book Value per Share 31.125.518.715.8
Share Price 51.5% 9% 4.5% 50.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.7230.6131.7346.9943.5340.4536.7225.0917.6517.09
Operating Profit Margin (%) 18.120.9624.1230.5234.2934.2635.4630.9727.5726.41
Net Profit Margin (%) 9.0111.911.7919.1921.1923.725.5421.318.4115.99
Debt to Equity 0.830.670.320.220.090.07000.020.02
Working Capital Days 191173148125116121120143206210
Cash Conversion Cycle 89805639496251588893
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 70.34%
Institutions 20.38%
Non-Institutions 9.27%
Pledged *11.7012.8515.8313.3717.7716.8617.2916.1516.0615.17
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ajanta Pharma Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ajanta Pharma Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ajanta Pharma Ltd's performance infers:

Ajanta Pharma Ltd earnings have grown by 6%, whereas share price has appreciated 9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ajanta Pharma Ltd share prices over the last 10 years. Here is what we found out:

Ajanta Pharma Ltd share price has appreciated 51% annually over the past ten years.

Ajanta Pharma is established in 1973. Committed to 'Serve Health Care Needs Worldwide', the company produces a comprehensive range of specialty products targeting different therapeutic segments for treatment of patients, customised to each market it is present in. The company's Institutional business comprises of India Business and Africa Business. In India, company is a reliable supplier for various government bodies like Armed forces,

Ajanta Pharma is established in 1973. Committed to 'Serve Health Care Needs Worldwide', the company produces a comprehensive range of specialty products targeting different therapeutic segments for treatment of patients, customised to each market it is present in. The company's Institutional business comprises of India Business and Africa Business. In India, company is a reliable supplier for various government bodies like Armed forces, government hospitals, canteens, stores department, etc. The product basket for India market includes multivitamins, antibiotics, eye drops, cough syrups, etc. In Africa, the company was the first Generic Company to obtain 'WHO Pre-Qualification' for Anti-Malarial product, a combination of Artemether plus Lumefantrine. It has been innovating on this product since then and has given many new variations for patient convenience and compliance.

As a part of the company’s philosophy to build sustainable and scalable business model, it set its eye on entering the world’s largest and most stringent pharmaceutical market-USA. It carved out select product portfolio which include complex technology products to get the competitive advantage in the market place. It has also made substantial investments in its R&D facilities and thereby acquired required technical and regulatory expertise to penetrate the market. It has an advanced Research & Development Centre for finished formulations and Active Pharmaceutical Ingredient (API) synthesis of different dosage forms.

Business area of the company

Ajanta Pharma is a specialty pharmaceutical company engaged in development, manufacturing and marketing of quality finished dosages. Its business includes Branded Generics in emerging markets of Asia and Africa, Generics in the developed markets of USA and Institution sales. Emerging markets are the major contributors in company’s branded generic business where it is present across Asia and Africa. It has designed customised basket of products for each of these markets and serve wide range of therapeutic segments like Anti-Biotic, Anti-Malarial, Anti-Diabetic, Cardiology, Gynecology, Orthopedics, Pediatric, Respiratory & General Health products.

Awards and accreditations

  • 2011: Gold Trophy for Quality Excellence from Indian Drug Manufacturer's Association.
  • 2015: Listed in Top 100 Companies of Asia by Bio Spectrum Asia, Ranked 76th.
  • 2015: Listed in Fortune India Next 500, being 3rd largest wealth creator during last 5 years, Ranked 20th in Net Profit and 182nd in Sales.
  • 2015: Fastest wealth creator in last 5 years as per a study by Motilal Oswal.
  • 2016: Listed in ‘Fastest Growing Company in India’ and Ranked 21st by Outlook Business Magazine.
  • 2017: Ajanta listed among fastest growing pharma company, ranked 11th in revenue by Businessworld.
  • 2017: Listed among Out Performers List of Outlook Business, ranked 1st Among Stock Return.
  • 2017: Listed among ‘Forbes India Super 50 Companies’ for the 3rd year in a row.
  • 2017: Listed in BT 500 ranked 148th in Market Capitalisation, 327th in sales & 102nd in Profit.
  • 2017: Ranked 186th in Next Super 100 companies by Business India.
  • 2017: Listed as Fastest Wealth Creator for the 3rd year in a row by Motilal Oswal.
  • 2018: Listed in Fortune 500 list of Indian companies Ranked 3rd in wealth creation.
  • 2018: Top Export Performer Award' by the Federation of Indian Export Organisations.

Major events and milestones

  • 1973: Ajanta started with re-packing of generic products.
  • 1979: Launched branded OTC (Over the Counter) products.
  • 1979: First Manufacturing Facility set up in India- (Chikalthana).
  • 1986: Started production at second manufacturing facility in India-(Paithan).
  • 1989: Launched block buster OTC product '30+' in India.
  • 1992: Foray in international market.
  • 1995: Established subsidiary in Mauritius with manufacturing facility.
  • 2000: Got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
  • 2005: Strategic shift from OTC to Innovative Specialised Prescription Products in Ophthal, Dermatology & Cardiology.
  • 2007: Set-up dedicated fully equipped R&D facility in Mumbai.
  • 2009: Bought a manufacturing facility at Chitegaon to fuel the company's growth.
  • 2009: API facility set up in Waluj for captive consumption.
  • 2009: First Generic Company in the world to get WHO Geneva Pre-qualification for Anti-Malarial Drug.
  • 2010: Entered Philippines market with unique product portfolio through Ajanta Pharma Philippines Inc.
  • 2011: Emerged as a strong speciality player in domestic market in Ophthalmology, Dermatology and Cardiology with many brands holding leadership positions.
  • 2012: Ranked among the Top 10 Pharma companies in Franco Africa.
  • 2013: Began Sales in the USA.
  • 2014: Second Dedicated R&D centre set up in Kandivli for India and Emerging Markets.
  • 2014: Inaugurated a New Facility in Dahej, Bharuch, Gujarat, India.
  • 2015: Launch of Montelukast lR Tablets and Chewable Tablets.
  • 2015: Launch of Montelukast Sodium Oral Granules.
  • 2016: USFDA Approval for Almotriptan Malate Tablets.
  • 2017: Inaugurated & commissioned first phase at a New Facility in Guwahati, Assam, India.
  • 2017: Dahej facility receives successful US FDA approval.
  • 2017: Launch of Eletriptan Hydrobromide tablets in US market. 
  • 2017: USFDA approval for Entacapone tablets. 
  • 2017: Approval and launch of Clonidine Hydrochloride extended release tablets.
  • 2018: Commissioned Ajanta's 1st ever Derma facility in Guwahati.
  • 2019: New manufacturing facility for oral solid inaugurated at Pithampur.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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