Ajanta Pharma Ltd. share price target

Ajanta Pharma Limited is a specialty pharmaceutical company engaged in developing, producing and marketing a range of branded and generic formulations. Its business includes branded generics in emerging markets of Asia and Africa, generics in the developed markets of the United States and Institutional sales. The branded generics business is spread in India and over 30 emerging countries across Africa, Commonwealth of Independent States (CIS), the Middle East and South East Asia. Company's Institutional business comprises of supplies to various government bodies in India and supply of Anti-Malarial products under WHO approved programs in Africa....

Growth Momentum to Continue in Domestic Biz; Maintain BUY Led by recovery in domestic formulations business and robust performance in African business, Ajanta Pharma (AJP) has delivered a better-than-expected performance in 2QFY18. Its revenues, EBITDA and PAT stood at Rs 5.4bn (vs. our estimate of Rs 4.8bn), Rs 1.8bn (vs. our estimate of Rs 1.4bn) and Rs 1.3bn (vs. our estimate of Rs 1.0bn), respectively. EBITDA margin at 34.0% exceeded our estimate of 29.0% led by better product-mix and recovery in domestic business. Notably, AJP's US sales dipped 63% YoY to Rs260mn primarily owing to price erosion in base business product portfolio following channel consolidation. Notably, AJP plans to file 12-15 ANDAs with...

ICICI Securities Ltd | Retail Equity Research Revenues grew 5% YoY at | 540 crore (I-direct estimate: | 506 crore) mainly due to 13% YoY growth in domestic sales to | 178 crore (Idirect estimate: | 173 crore). Export formulations grew marginally by 1% to | 350 crore (I-direct estimate: | 317 crore) EBITDA margins increased 51 bps YoY to 34% (I-direct estimate: 29.1%). Improvement in gross margins by 242 bps YoY to 80% was largely offset by 256 bps increase in employee expenses to 16.5% Adjusted net profit remained flat YoY at | 132 crore (I-direct...

Ajanta Pharma's (AJP) 2QFY18 financial performance was better than expectations, with sales at INR5.4b (est. of INR5b), EBITDA margin at 34% (est. of 29%) and PAT at INR1.3b (est. of INR1b). DF and Africa drive growth: Sales grew 4.8% YoY, led by strong institutional anti-malaria sales and a recovery in domestic formulation (DF) business. However, a decline in US sales and moderate growth in Asia sales adversely affected overall sales growth for the quarter. Superior product mix and higher operating leverage led to 40bp YoY (+640bp QoQ) expansion in EBITDA margin....

Global Fund a key provider of insti-AM business Tender award by the Global Fund holds immense significance in the insti-AM segment. Notably, the Global Fund was the biggest contributor, with ~28% share in total funding to agencies in 2015. The Global Fund spent ~USD9.9b over 2005-17, which was utilized for 1) improving health systems (~59% of total spending), 2) prevention (~24%) and 3) treatment (~17%). The spending for treatment in 2016 is estimated at USD154m. Although the amount committed for 2017-19 is stable compared to that in 2014-16, the business for pharma companies will be...

Revenues remained flat YoY at | 473 crore (I-direct estimate: | 486 crore). Domestic growth was impacted by GST transition while export formulation growth was driven by robust growth in the US EBITDA margins declined 802 bps YoY to 26.8% (I-direct estimate: 31%) mainly due to the impact of GST transition and higher fixed overheads due to commissioning of new plants Adjusted net profit declined 21% YoY to | 95 crore (I-direct estimates: | 100 crore). Lower tax rate (20% against 24% in Q1FY17)...

Revenue fell by 11.44% to Rs. 456.12 Cr in Q4FY17 when compared to the previous quarter

Domestic formulations- Focus on new launches and few therapies Domestic branded formulations constitute 31% of the FY17 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). Of the 200+ actively marketed brands, 70% brands were introduced first time in India. The focus on specialty therapies and niche product led APL to post a strong growth at a CAGR of 22% in FY12-17, far...

Revenue increased by 2.52% to Rs. 515.02 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 9.68% when compared with Q3FY16

Revenues grew 12% YoY to | 533 crore (I-direct estimate: | 578 crore) on the back of 15% growth in domestic sales to | 154 crore (Idirect estimate: | 157 crore). Export formulations grew 9% YoY to | 361 crore (I-direct estimate: | 408 crore). The sharp growth in the US was largely offset by the decline in Asia EBITDA margins declined 100 bps YoY to 33.4% (I-direct estimate: 35.0%) mainly due to higher other expenditure Net profit increased 25% YoY to | 143 crore (I-direct estimate: | 145 crore) mainly due to forex gain of | 10 crore and lower taxation...