2017.55 16.45 (0.82%)
251.2K NSE+BSE Volume
NSEMay 07, 2021 03:31 PM
The 18 reports from 5 analysts offering long term price targets for Ajanta Pharma Ltd. have an average target of 2117.20. The consensus estimate represents an upside of 4.94% from the last price of 2017.55.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-05-03||Ajanta Pharma Ltd. +||HDFC Securities||1837.05||2235.00||1837.05 (9.83%)||10.78||Buy|
HSIE Results Daily: IndusInd Bank, Shriram Transport Finance, AU Small Finance Bank, Trent, Ajanta Pharma, Motilal ...
Ajanta Pharma: Ajanta delivered solid Q4 with revenue/EBITDA growth of 11%/71% YoY amidst challenging environment. While revenues came in line, strong recovery in India (+23% YoY) and continued growth in the US (+21% YoY) was encouraging. EBITDA margin improved to 34.3% (+200bps QoQ) driven by higher gross margin and lower other expenses. We expect margin to stabilize around ~31%+ levels in FY22 (vs. 26%/34% in FY20/21) as other expenses normalise. With conclusion of major capex and steady growth in key markets, operating leverage benefit is expected to drive ~13% earnings CAGR over FY21-23e and core ROCE expansion to 28% in FY23 (from ~17%/25% in FY20/21). Maintain BUY. Revised TP of INR2,225/sh. Motilal Oswal Financial Services: Strong cash/derivative volume at +19/20% QoQ drove capital markets APAT +114/12% YoY to INR 917mn. AMC's APAT grew 86/65% to INR 746mn (+73% vs. est.) on the back of healthy equity markets and certain one-offs. Significant MTM gain (INR 2.6bn, +25% QoQ) on treasury resulted in MOFS (ex. MOHFL) APAT growth of 31% sequentially to INR 4.3bn. We have increased our FY22/23E estimates to factor in lower impact of peak-margin requirements. We retain an ADD with a TP of INR 800 (15/25x Mar-23E Broking/AMC APAT, + 0.7/0.5x for Mar-23E treasury/ MOHL). IndusInd Bank: IndusInd Banks (IIB) 4QFY21 operating performance was above our expectations (PPOP growth of 8% YoY), marred by higher-than-expected provisions. While the bank continues to gain traction on deposits mobilisation (27% YoY), it seems to be conservative on assets mobilisation (loan growth of 3% YoY) with greater focus on...
|2021-05-03||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1947.80||2300.00||1947.80 (3.58%)||14.00||Buy|
|2021-05-01||Ajanta Pharma Ltd. +||HDFC Securities||1840.10||2225.00||1840.10 (9.64%)||10.28||Buy|
Maintain BUY. Revised TP of INR2,225/sh Ajanta delivered solid Q4 with revenue/EBITDA growth of 11%/71% YoY amidst challenging environment. While revenues came in line, strong recovery in India (+23% YoY) and continued growth in the US (+21% YoY) was encouraging. EBITDA margin improved to 34.3% (+200bps QoQ) driven by higher gross margin and lower other expenses. We expect margin to stabilize around ~31%+ levels in FY22 (vs. 26%/34% in FY20/21) as other expenses normalise. With conclusion of major capex and steady growth in key markets, operating leverage benefit is expected to drive ~13% earnings CAGR over FY21-23e and core ROCE expansion to 28% in FY23 (from ~17%/25% in FY20/21)
|2021-05-01||Ajanta Pharma Ltd. +||ICICI Securities Limited||1840.10||2250.00||1840.10 (9.64%)||11.52||Buy|
ICICI Securities Limited
Q4 revenues grew 11.0% YoY to | 757 crore. Domestic sales grew 23.2% to | 218 crore whereas emerging markets (branded) de-grew 10.5% YoY to | 273 crore amid logistical challenges in Asia and Africa. US sales grew 21% to | 173 crore. Africa tender business grew 86% YoY to | 80 crore. EBITDA margins improved significantly to 34.3% (vs. 22.2% in Q4FY20) amid better gross margins and lower other expenditure. EBITDA grew 71.4% YoY to | 259 crore. PAT grew 21% YoY to | 159 crore. Delta vis--vis EBITDA was...
|2021-02-03||Ajanta Pharma Ltd. +||HDFC Securities||1801.65||2250.00||1801.65 (11.98%)||11.52||Buy|
Maintain BUY, risks: We increase our EPS estimate by 10% for FY21e to factor the Q3 beat and by 3-4% for FY22-23e on the back of improved growth visibility for the branded business. We revise our TP upwards to INR 2,250/sh, based on 23x FY23e EPS. Key risks: Expansion of NLEM list, lower growth in EMs, delay in US approvals, and currency volatility in EMs. Ajantas Q3 revenue grew by 15% YoY driven by strong performance in branded markets and Africa Institutional business. Despite normalisation in fixed costs (at pre-Covid levels), EBITDA margin came higher at 32% (+372bps YoY) driven by improvement in gross margin (+344bps YoY). We believe Ajanta is poised to re-rate as: a) its high exposure to branded business (~70% of revenue) offers good growth visibility with superior margins; b) rising scale in the US (USD 80mn, doubled in 2 years) will lead to meaningful improvement in profitability; c) with conclusion of major capex cycle (INR 16bn+ in the past 6 years, internally funded) and plant opex reflecting in P&L;, operating leverage benefits are expected to drive strong earnings growth of 15% CAGR, core-ROCE expansion of ~465bps to 29% and FCF generation of ~INR 14bn over FY21e-FY23e. Maintain BUY with a revised TP of INR 2,250/sh. Refer our initiation report - Gearing for the next leap.
|2021-02-03||Ajanta Pharma Ltd. +||ICICI Securities Limited||1801.65||2250.00||1801.65 (11.98%)||11.52||Buy|
ICICI Securities Limited
Q3 results were a beat on all fronts on the back of strong growth in branded generic sales in Emerging markets and India along with better gross margin performance. While the management expects subdued domestic growth in FY21 due to Covid-19, it expects high single digit growth for branded business in Asia, Africa (India, Asia, Africa- ~70% of sales) along with ~20% growth for US. On margins front, change in product mix (higher US revenues) notwithstanding, the management expects ~200-250 bps improvement in FY21, going ahead, with improving operating leverage and...
|2021-02-02||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1801.65||2100.00||1801.65 (11.98%)||4.09||Buy|
BOB Capital Markets Ltd.
Ajanta Pharma (AJP) reported yet another excellent quarter with Q3 revenue/ EBITDA growth of 15%/30% YoY to Rs 7.5bn/Rs 2.4bn, surpassing our estimates by 11%/14%.
|2021-02-02||Ajanta Pharma Ltd. +||Motilal Oswal||1801.65||2030.00||1801.65 (11.98%)||Target met||Buy|
Ajanta Pharma (AJP) delivered higher than expected earnings, led by superior growth in the Branded Generics segment. This was further supported by a lower tax rate in 3QFY21. While the pace of ANDA filing has moderated in 9MFY21 due to COVID-related disruptions, it would improve with the easing of lockdown restrictions. We have raised our FY21E/FY22/FY23E estimates by 7.4%/7.1%/6.5% to factor in: a) recovery in DF/Asia/Africa, b) robust ANDA pipeline, and c) improved capacity utilization. We continue to value AJP at 23x 12 months...
|2021-01-25||Ajanta Pharma Ltd. +||HDFC Securities||1758.95||2150.00||1758.95 (14.70%)||6.56||Buy|
Initiate with a BUY and target price of Rs2,150/sh. Ajanta Pharma is a diversified branded play with best-in-class return metrics. Its high exposure to branded generics markets (70%+ revenue from India, Asia and Africa) offers sustainable growth visibility with superior profitability. Rising scale in the US business is expected to drive margin expansion and increased contribution to the overall profits. With the conclusion of major capex cycle (Rs16bn+ in the past 6 years, internally funded) and plant opex reflecting in P&L;, operating leverage benefits are expected to drive strong earnings growth of 18% CAGR, core-ROCE expansion of ~550bps to 28% and FCF generation of ~Rs13bn over FY21e-FY23e.
|2020-11-05||Ajanta Pharma Ltd. +||Dolat Capital||1586.30||1771.00||1586.30 (27.19%)||Target met||Accumulate|
Ajanta Pharma reported stellar Q2 beating our estimates on the operating performance. Top-line grew 8% YoY, in-line with our estimate, driven by US and branded Africa business. Other geographies including India were muted. However, lower opex aided margins at 38.3% (up 490 bps QoQ and 1,070 bps YoY), way higher than our estimates. While the same is expected to taper as activities resume in subsequent quarters,...
|2020-11-04||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1613.55||1920.00||1613.55 (25.04%)||Target met||Buy|
|2020-09-21||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1590.65||1900.00||1590.65 (26.84%)||Target met||Buy|
|2020-07-31||Ajanta Pharma Ltd. +||Motilal Oswal||1629.20||1815.00||1629.20 (23.84%)||Target met||Buy|
EBITDA margin expanded at higher rate of 590bp YoY with superior product mix and controlled opex. We remain positive on AJP on its new launches, rising share in key markets of the US/India/Asia/Africa and improved operating leverage. Re-iterate In the branded formulation segment, AJP witnessed 15% YoY decline in India, while it delivered 27.8%/17.4% YoY growth in Asia/Africa in 1QFY21. AJP has strong pipeline of registration in both Asia/Africa branded segment. We expect Africa branded segment to deliver better 12% CAGR over FY20-22E to INR4.3b owing to increased offerings and better reach. AJPs US sales grew 46% YoY due to increased traction in existing With 19 ANDAs pending approval, the company has an intention to file 10-12 ANDAs annually. Considering 6-7 launches in FY21, we expect AJP to garner 20% CAGR in US sales over FY20-22E to INR7.3b in this segment.
|2020-07-31||Ajanta Pharma Ltd. +||ICICI Securities Limited||1629.20||1810.00||1629.20 (23.84%)||Target met||Buy|
ICICI Securities Limited
Domestic formulations - Focus on new launches, few therapies Domestic formulations comprise 30% of FY20 revenues. The main distinguishing factor is the uncanny knack of launching maximum number of first time launches with focus on new drug delivery system (NDDS). Out of 270+ actively marketed brands, ~60% were first time launches. However, a slowdown in dermatology segment due to increased competition in existing products and slow offtake in new launches are some near term challenges. We expect domestic formulations to grow at ~11% CAGR in...
|2020-07-30||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1629.20||1730.00||1629.20 (23.84%)||Target met||Buy|
|2020-05-22||Ajanta Pharma Ltd. +||ICICI Securities Limited||1512.25||1730.00||1512.25 (33.41%)||Target met||Buy|
ICICI Securities Limited
Domestic formulations: Focus on new launches, few therapies Domestic formulations comprise 30% of FY20 revenues. Main distinguishing factor is the uncanny knack of launching maximum number of first time launches with focus on new drug delivery system (NDDS). Out of 270+ actively marketed brands, ~60% were first time launches. However, a slowdown in dermatology segment due to higher competition in existing products and slow offtake in new launches are some near term challenges. We expect domestic formulations to grow at ~12% CAGR in...
|2020-05-20||Ajanta Pharma Ltd. +||Motilal Oswal||1487.40||1700.00||1487.40 (35.64%)||Target met||Buy|
20 May 2020 Ajanta Pharma (AJP) ended FY20 on a healthy note with 15% earnings growth (v/s 12% compounded earnings decline over FY17-19), led by sales revival in Asia, Africa and new introductions in the US market. The companys major capex program would conclude in FY21 and only maintenance capex would be required FY22E onwards, indicating better free cash flow situation for AJP. We reduce our EPS estimate for FY21 by 6% to factor in the COVID-19 led slowdown in the branded generics segment. INR6.3b) grew 32% YoY, led by exports (+43%YoY; 74% of sales). Within exports, US generic sales were up 88% YoY (INR1.4b) and emerging markets sales grew 38% YoY (INR3b). Domestic formulation sales grew 11% YoY to INR1.8b (~26% of sales). Gross Margin (GM) came in at 74% and contracted 550bp YoY due to change in the product mix. AJP had forex loss of INR150m in other expenses. Adjusting for the same, EBITDA margin at 24.
|2020-05-20||Ajanta Pharma Ltd. +||BOB Capital Markets Ltd.||1512.25||1650.00||1512.25 (33.41%)||Target met||Buy|
|2020-04-20||Ajanta Pharma Ltd. +||ICICI Securities Limited||1306.50||1700.00||1306.50 (54.42%)||Target met||Buy|
ICICI Securities Limited
On the business front, despite the nationwide lockdown, domestic growth is expected to remain more or less stable. Exports growth, barring for one or two months due to congestion in all major ports globally, is also expected to remain strong due to 1) currency benefit, 2) slowdown in competition due to delay in new approvals that will be beneficial for existing players and 3) expected demand continuum across the world despite Covid-19. Some windfall is also expected in some critical productsa case in point is Hydroxychloroquine, a malaria drug that is likely to be repurposed as a prophylaxis for Covid-19 treatment in some cases....
|2020-02-27||Ajanta Pharma Ltd. +||Motilal Oswal||1385.15||1655.00||1385.15 (45.66%)||Target met||Buy|
With stability in industry cash cycle, AJP has enhanced its business scope in the branded markets of Asia and Africa. For branded generics business (67% of sales), AJP has guided for 9- 11% YoY growth for the next three years. Covered market growth in Dermatology for the past five years was 16%, while AJP grew at 8% due to a high base of Melacare range of products and higher attrition in MRs. Going forward, covered market growth is expected to be 9- 10%. Compared to its subdued growth in the past, AJP expects to do better (11- 12%) as (a) MR team being stabilized for this segment, (b) renewed interest in Melacare range of products and (c) new launches lined up in this segment. Considering covered market growth expectation at 7-8%, AJP intends to do better than industry at 10-11% in Cardiology.