Ajanta Pharma Ltd. share price target

Branded generics traction, US momentum key differentiators- Branded business growth in India was significantly above the trendline and without one-offs, driven by 16 new launches over the last 9-12 months and improved coverage. The US also maintained the growth tempo on account of 8 new launches over the last 9-12 months and market share gain in the existing products. US traction is contrary to the existing industry trend as the focus remains on specific launches. Africa branded continued to be driven by new launches. Asia branded on the other hand witnessed...

Ajanta Pharma (AJP) posted a better-than-expected financial performance in 3QFY26, with 5%/7%/5% beat on revenue/EBITDA/PAT. AJP saw superior execution in Africa, US and domestic formulation (DF), which was offset to some extent by subdued performance in Asia.

AJP is implementing multiple strategic initiatives across focus branded generics markets of India, Asia, and Africa to sustain robust industry outperformance.

Q2FY26- Momentum driven by US and India Business - Revenues grew ~14% YoY to 1354 crore driven by US and India branded business which grew ~48% / ~12% to 344 crore and 432 crore, respectively. Other branded businesses such as Asia and Africa witnessed the growth of 5% / 4% (on higher base) to 310 crore and 221 crore, respectively. On the operational front, EBITDA grew 5.4% YoY to ~328 crore (excluding forex losses of 41 crore, 9 % growth to ~369 crore) with margins at 24.2%...

Ajanta Pharma (AJP)’s 2QFY26 revenue was slightly above our expectation (3.5% beat). EBITDA and PAT were largely in line and grew at a lower rate compared to revenue growth for the quarter.

Earnings were in line with our estimates with sales /EBITDA/PAT reported 1%/-2.7%/3% above estimates

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.