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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532331 | NSE: AJANTPHARM

Ajanta Pharma Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 10:25 pm

Market Cap 37,046 Cr.
Current Price 2,968
High / Low3,486/1,850
Stock P/E42.3
Book Value 294
Dividend Yield1.21 %
ROCE31.6 %
ROE23.2 %
Face Value 2.00
PEG Ratio4.12

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ajanta Pharma Ltd

Competitors of Ajanta Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,728 Cr. 342390/10870.7 20.50.19 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 56.4 Cr. 76.094.9/25.821.6 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 27.8 Cr. 19.019.5/8.3536.1 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 92.1 Cr. 122155/87.013.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,287 Cr. 1,0851,335/62731.4 2072.07 %28.1 %21.1 % 2.00
Industry Average19,819.07 Cr1,257.7758.98184.910.31%16.36%16.88%6.61

All Competitor Stocks of Ajanta Pharma Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7488858388709519389728821,0211,0281,1051,0541,145
Expenses528622598664729742802732750738791776815
Operating Profit220263240207222196170149271291314278330
OPM %29%30%29%24%23%21%17%17%27%28%28%26%29%
Other Income33302429334035373221143626
Interest2017113112221
Depreciation31323231323333333334343434
Profit before tax220260231198222203168152269276291278322
Tax %21%25%17%24%21%23%20%20%23%29%28%27%24%
Net Profit174196192151175157135122208195210203246
EPS in Rs13.3915.1014.7811.8013.6312.2210.509.5416.5315.5116.6816.1019.68

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6779311,2081,4741,7491,9832,1262,0552,5882,8903,3413,7434,036
Expenses5457068409681,1551,2921,4671,4891,9041,8892,4082,9343,011
Operating Profit1322243695055946916585676831,0019338081,025
OPM %19%24%31%34%34%35%31%28%26%35%28%22%25%
Other Income6614814202421882411274104
Interest15199651011281067
Depreciation323444524461607296116125131134
Profit before tax91177330456559648623514664900909745988
Tax %15%37%29%32%26%22%25%25%30%27%22%21%
Net Profit77112234310416507469387468654713588736
EPS in Rs5.858.4917.7523.4731.4938.4035.5029.5635.7350.3855.6345.8958.26
Dividend Payout %11%13%15%17%17%23%0%20%24%13%11%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)45.45%108.93%32.48%34.19%21.88%-7.50%-17.48%20.93%39.74%9.02%-17.53%
Change in YoY Net Profit Growth (%)0.00%63.47%-76.45%1.71%-12.32%-29.37%-9.99%38.41%18.81%-30.72%-26.55%

Ajanta Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:13%
TTM:15%
Compounded Profit Growth
10 Years:13%
5 Years:16%
3 Years:7%
TTM:33%
Stock Price CAGR
10 Years:16%
5 Years:35%
3 Years:28%
1 Year:51%
Return on Equity
10 Years:24%
5 Years:21%
3 Years:21%
Last Year:23%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:45 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12181818181818181717252525
Reserves3825768231,1731,5502,0242,2282,5812,9783,2473,3633,5423,652
Borrowings12513072811236753125363533
Other Liabilities2002262332072543833836197027111,1599271,081
Total Liabilities7189491,1461,4791,8232,4262,6643,2933,7294,0004,5824,5304,790
Fixed Assets2732792884515891,0531,1781,4721,5411,5121,4961,4791,451
CWIP129417024033961262132108153209256349
Investments86360861821907879176147535349702
Other Assets4255136297037131,1221,1471,6101,9042,1882,3412,4462,289
Total Assets7189491,1461,4791,8232,4262,6643,2933,7294,0004,5824,5304,790

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +234212279326609281375457576562792785
Cash from Investing Activity +-104-188-158-209-383-256-223-224-282-74-56065
Cash from Financing Activity +-104-20-105-117-202-0-147-129-318-460-108-1,051
Net Cash Flow26416-024254104-2428124-201

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow132.0099.00239.00433.00513.00690.00656.00531.00608.00-30.00908.00772.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5961647859798210993111103108
Inventory Days178164159180186315415276434347283283
Days Payable159132109128157224214202212143147159
Cash Conversion Cycle789411413088170282184315315240233
Working Capital Days595761906510311911612714184120
ROCE %39%55%57%52%46%34%24%27%32%29%23%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.34%70.48%70.48%70.48%66.11%66.11%66.22%66.22%66.22%66.22%66.27%66.26%
FIIs8.95%8.64%8.30%8.23%10.07%10.00%10.19%9.99%9.11%8.54%8.36%9.11%
DIIs12.14%12.29%12.46%12.68%15.37%15.52%15.36%15.60%16.67%17.48%17.41%17.09%
Government0.45%0.45%0.45%0.45%0.45%0.45%0.46%0.00%0.00%0.00%0.01%0.01%
Public8.12%8.14%8.31%8.15%8.00%7.91%7.78%8.21%8.00%7.76%7.94%7.51%
No. of Shareholders57,89760,75964,44562,04859,79883,54954,87456,27754,35155,48870,31664,315

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund1,977,7440.94430.01510,5212024-11-30287.4%
UTI Flexi Cap Fund1,851,4781.6402.56510,5212024-11-30262.66%
Kotak Small Cap Fund - Regular Plan992,2711.5215.74510,5212024-11-3094.36%
Nippon India Pharma Fund968,2143.05210.51510,5212024-11-3089.65%
Invesco India Contra Fund775,2591.26168.56510,5212024-11-3051.86%
HDFC Large and Mid Cap Fund - Regular Plan674,3730.91146.63510,5212024-11-3032.1%
Nippon India Multi Cap Fund628,9660.53136.75510,5212024-11-3023.2%
Canara Robeco Small Cap Fund546,9911.24118.93510,5212024-11-307.14%
Franklin India Prima Fund527,1731.14114.62510,5212024-11-303.26%
Mirae Asset Midcap Fund510,5210.77111510,5212024-11-300%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)64.8245.8982.4575.0953.60
Diluted EPS (Rs.)64.7745.8982.4575.0953.60
Cash EPS (Rs.)75.3156.8997.6188.5564.24
Book Value[Excl.RevalReserv]/Share (Rs.)282.34268.14380.24344.52296.34
Book Value[Incl.RevalReserv]/Share (Rs.)282.34268.14380.24344.52296.34
Revenue From Operations / Share (Rs.)333.10296.21389.17332.34295.08
PBDIT / Share (Rs.)99.4569.80121.72117.8388.43
PBIT / Share (Rs.)88.7359.45107.13104.4877.51
PBT / Share (Rs.)88.1658.98105.94103.5375.71
Net Profit / Share (Rs.)64.6046.5483.0175.2053.33
NP After MI And SOA / Share (Rs.)64.6046.5483.0175.2053.33
PBDIT Margin (%)29.8523.5631.2735.4529.96
PBIT Margin (%)26.6320.0627.5231.4326.26
PBT Margin (%)26.4619.9127.2231.1525.65
Net Profit Margin (%)19.3915.7121.3322.6218.07
NP After MI And SOA Margin (%)19.3915.7121.3322.6218.07
Return on Networth / Equity (%)22.8717.3521.8321.8217.99
Return on Capital Employeed (%)29.9521.2126.9829.0225.06
Return On Assets (%)17.5912.5617.5717.3014.09
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.900.810.830.790.76
Current Ratio (X)3.052.493.503.132.71
Quick Ratio (X)2.121.772.281.941.89
Inventory Turnover Ratio (X)1.141.191.101.251.28
Dividend Payout Ratio (NP) (%)78.6815.2511.5312.6724.25
Dividend Payout Ratio (CP) (%)67.4812.479.8110.7620.13
Earning Retention Ratio (%)21.3284.7588.4787.3375.75
Cash Earning Retention Ratio (%)32.5287.5390.1989.2479.87
Interest Coverage Ratio (X)174.28151.01102.45123.8965.11
Interest Coverage Ratio (Post Tax) (X)114.20101.6870.8780.0740.60
Enterprise Value (Cr.)28149.1114945.6115321.6715384.3011819.91
EV / Net Operating Revenue (X)6.693.994.595.324.57
EV / EBITDA (X)22.4016.9514.6615.0215.24
MarketCap / Net Operating Revenue (X)6.724.084.655.404.63
Retention Ratios (%)21.3184.7488.4687.3275.74
Price / BV (X)7.934.514.765.214.61
Price / Net Operating Revenue (X)6.724.084.655.404.63
EarningsYield0.020.030.040.040.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ajanta Pharma Ltd as of December 3, 2024 is: 2,920.11

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Ajanta Pharma Ltd is Overvalued by 1.61% compared to the current share price 2,968.00

Intrinsic Value of Ajanta Pharma Ltd as of December 3, 2024 is: 3,220.08

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Ajanta Pharma Ltd is Undervalued by 8.49% compared to the current share price 2,968.00

Last 5 Year EPS CAGR: 10.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 37.50%, which is a positive sign.
  2. The company has higher reserves (2,163.00 cr) compared to borrowings (52.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (125.38 cr) and profit (584.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 95.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 186.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ajanta Pharma Ltd:
    1. Net Profit Margin: 19.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.95% (Industry Average ROCE: 16.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.87% (Industry Average ROE: 16.41%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 114.2
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.12
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 42.3 (Industry average Stock P/E: 47.62)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ajanta Pharma Ltd. is a Public Limited Listed company incorporated on 31/12/1979 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24230MH1979PLC022059 and registration number is 022059. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 3140.64 Cr. and Equity Capital is Rs. 17.17 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsAjanta House, Charkop, Mumbai Maharashtra 400067info@ajantapharma.com
http://www.ajantapharma.com
Management
NamePosition Held
Mr. Mannalal B AgrawalChairman
Mr. Madhusudan B AgrawalVice Chairman
Mr. Yogesh M AgrawalManaging Director
Mr. Rajesh M AgrawalJoint Managing Director
Mr. K H ViswanathanIndependent Director
Mr. Prabhakar R DalalIndependent Director
Dr. Anjana GrewalIndependent Director
Mr. Chandrakant M KhetanIndependent Director

FAQ

What is the latest intrinsic value of Ajanta Pharma Ltd?

The latest intrinsic value of Ajanta Pharma Ltd as on 03 December 2024 is ₹2920.11, which is 1.61% lower than the current market price of ₹2,968.00. The stock has a market capitalization of 37,046 Cr. and recorded a high/low of ₹3,486/1,850 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,652 Cr and total liabilities of ₹4,790 Cr.

What is the Market Cap of Ajanta Pharma Ltd?

The Market Cap of Ajanta Pharma Ltd is 37,046 Cr..

What is the current Stock Price of Ajanta Pharma Ltd as on 03 December 2024?

The current stock price of Ajanta Pharma Ltd as on 03 December 2024 is 2,968.

What is the High / Low of Ajanta Pharma Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Ajanta Pharma Ltd stocks is 3,486/1,850.

What is the Stock P/E of Ajanta Pharma Ltd?

The Stock P/E of Ajanta Pharma Ltd is 42.3.

What is the Book Value of Ajanta Pharma Ltd?

The Book Value of Ajanta Pharma Ltd is 294.

What is the Dividend Yield of Ajanta Pharma Ltd?

The Dividend Yield of Ajanta Pharma Ltd is 1.21 %.

What is the ROCE of Ajanta Pharma Ltd?

The ROCE of Ajanta Pharma Ltd is 31.6 %.

What is the ROE of Ajanta Pharma Ltd?

The ROE of Ajanta Pharma Ltd is 23.2 %.

What is the Face Value of Ajanta Pharma Ltd?

The Face Value of Ajanta Pharma Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ajanta Pharma Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE