Ajanta Pharma Ltd. share price target

Ajanta Pharma’s Q4FY25 result was in line with our expectations. Revenue growth of 11% YoY was primarily driven by India and US businesses while Africa institutional biz continues to be a drag (-54.1% YoY).

AJP reported in-line earnings, sales were 3.6% below estimates, while EBITDA/PAT reported 1%/3% above our estimates

Ajanta Pharma (AJP) delivered a marginally better-than-expected performance in 3QFY25. It has continued to outperform in the Domestic Formulation (DF) market during this quarter.

At our virtual conference AJP said it is not looking to venture into newer therapies in India in the next 1-2 years due to hefty valuations

Ajanta Pharma (AJP) delivered in-line performance in 2QFY25. Asia/Africa (47% of sales) grew strongly at 32% YoY in 2QFY25 due to superior execution and partly on the low base of the past year.

Ajanta Pharma (AJP) delivered better-than-expected 1QFY25 performance, led by a superior show in the branded Africa segment, lower raw material costs, and controlled other expenses.

Strong quarter with EBITDA/PAT beat of 8% each, led by reduction in API prices, logistics costs and reduced intensity of US price erosion

Ajanta Pharma (AJP) delivered in-line sales in 4QFY24. However, EBITDA/PAT
came in lower than our expectations, due to higher opex and higher tax
outgo. AJP continued to outperform the industry in domestic formulation
(DF) and Asia market. The performance is expected to improve in the Africa
branded generics market going forward.

Strong Q2 gross/EBITDA margins at 75%/28% drove a 7% EBITDA beat, though higher tax pulled PAT 2% below consensus

Ajanta Pharma’s Q1FY24 result surprised positively on margin front. Softening of raw material and freight costs have started showing improvement in gross (+482bps YoY) and EBITDA (+325bps) margins. Traction in India branded business continues to be robust, with 14% growth vs market growth rate of 9%, while momentum in export branded business is expected to gain in quarters ahead.

Strong Q1 beat with EBITDA/PAT of Rs 2.7bn/Rs 2.1bn coming in 17%/ 39% ahead of consensus due to margin recovery

Strong India and US growth in Q4 (17% YoY each) offset by declines in other businesses