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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532331 | NSE: AJANTPHARM

Fundamental Analysis of Ajanta Pharma Ltd

About the Company - Ajanta Pharma Ltd

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. Chandrakant M KhetanIndependent Director
Mr. K H ViswanathanIndependent Director
Mr. Prabhakar R DalalIndependent Director
Dr. Anjana GrewalIndependent Director

Basic Stock Data of Ajanta Pharma Ltd

Last Updated: April 10, 2024, 3:21 am

Market Cap 27,381 Cr.
Current Price 2,175
High / Low2,355/1,230
Stock P/E37.2
Book Value 277
Dividend Yield1.65 %
ROCE22.6 %
ROE17.9 %
Face Value 2.00
PEG Ratio3.62

Competitors of Ajanta Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
TTK Healthcare Ltd 2,081 Cr. 1,4741,744/1,10133.1 7080.68 %8.67 %6.43 % 10.0
Cian Healthcare Ltd 60.5 Cr. 24.241.1/16.0864 22.40.00 %6.91 %3.44 % 10.0
Brooks Laboratories Ltd 257 Cr. 98.5186/56.5 30.10.00 %27.7 %23.4 % 10.0
Adline Chem Lab Ltd 10.6 Cr. 18.129.0/6.55 2.920.00 %%% 10.0
Ambalal Sarabhai Enterprises Ltd 378 Cr. 49.370.0/20.966.4 17.90.00 %5.85 %4.24 % 10.0
Industry Average557.42 Cr332.82192.70156.260.14%9.83%7.50%10.00

Ajanta Pharma Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7497577488858388709519389728821,0211,0281,105
Expenses507497528622598664729742802732750738791
Operating Profit242259220263240207222196170149271291314
OPM %32%34%29%30%29%24%23%21%17%17%27%28%28%
Other Income533330242933403537322114
Interest3320171131122
Depreciation29313132323132333333333434
Profit before tax215229220260231198222203168152269276291
Tax %18%30%21%25%17%24%21%23%20%20%23%29%28%
Net Profit177159174196192151175157135122208195210
EPS in Rs13.6112.2713.3915.1014.7811.8013.6312.2210.509.5416.5315.5116.68

Last Updated: May 7, 2024, 11:20 pm

Ajanta Pharma Ltd Quarterly Chart

Ajanta Pharma Ltd Profit & Loss

Last Updated: May 30, 2024, 3:55 am

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%

Ajanta Pharma Ltd 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 Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:13%
TTM:12%
Compounded Profit Growth
10 Years:13%
5 Years:16%
3 Years:8%
TTM:37%
Stock Price CAGR
10 Years:24%
5 Years:29%
3 Years:23%
1 Year:87%
Return on Equity
10 Years:24%
5 Years:21%
3 Years:21%
Last Year:23%

Last Updated: April 10, 2024, 3:21 am

Ajanta Pharma Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121818181818181817172525
Reserves2863825768231,1731,5502,0242,2282,5812,9783,2473,3633,457
Borrowings200125130728112367531253633
Other Liabilities1512002262332072543833836197027111,159918
Total Liabilities6497189491,1461,4791,8232,4262,6643,2933,7294,0004,5824,433
Fixed Assets2462732792884515891,0531,1781,4721,5411,5121,4961,485
CWIP3129417024033961262132108153209205
Investments886360861821907879176147535238
Other Assets3924255136297037131,1221,1471,6101,9042,1882,3412,506
Total Assets6497189491,1461,4791,8232,4262,6643,2933,7294,0004,5824,433

Ajanta Pharma Ltd Reserves and Borrowings Chart

Ajanta Pharma Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 70234212279326609281375457576562792
Cash from Investing Activity -53-104-188-158-209-383-256-223-224-282-74-560
Cash from Financing Activity -13-104-20-105-117-202-0-147-129-318-460-108
Net Cash Flow426416-024254104-2428124

Ajanta Pharma Ltd 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 Days595761906510311911612714183149
ROCE %39%55%57%52%46%34%24%27%32%29%23%

Ajanta Pharma Ltd Financial Efficiency Indicators Chart

Ajanta Pharma Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters70.34%70.34%70.34%70.34%70.34%70.48%70.48%70.48%66.11%66.11%66.22%66.22%
FIIs7.90%8.37%8.94%8.72%8.95%8.64%8.30%8.23%10.07%10.00%10.19%9.99%
DIIs11.72%11.86%11.81%12.07%12.14%12.29%12.46%12.68%15.37%15.52%15.36%15.60%
Government0.76%0.76%0.43%0.43%0.45%0.45%0.45%0.45%0.45%0.45%0.46%0.00%
Public9.27%8.67%8.47%8.43%8.12%8.14%8.31%8.15%8.00%7.91%7.78%8.21%
No. of Shareholders49,45944,88145,67252,26357,89760,75964,44562,04859,79883,54954,87456,277

Ajanta Pharma Ltd Shareholding Pattern Chart

No. of Ajanta Pharma Ltd Shareholders

Ajanta Pharma Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
UTI Flexi Cap Fund23428761.58404.71
Kotak Small Cap Fund - Regular Plan7741421.09133.73
UTI Value Opportunities Fund6656111.52114.98
HDFC Balanced Advantage Fund - Regular Plan6586260.18113.77
Invesco India Contra Fund5375000.8392.85
Franklin India Prima Fund5271731.0491.06
Mirae Asset Midcap Fund3897520.5667.33
Tata Large & Mid Cap Fund - Regular Plan3279371.1156.65
Tata Large & Mid Cap Fund - Regular Plan3279371.1156.65
UTI Long Term Equity Fund2950001.6250.96

Ajanta Pharma Ltd ROCE Trend

Ajanta Pharma Ltd EPS Trend

Ajanta Pharma Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)45.8982.4575.0953.6043.97
Diluted EPS (Rs.)45.8982.4575.0953.6043.96
Cash EPS (Rs.)56.8997.6188.5564.2452.34
Book Value[Excl.RevalReserv]/Share (Rs.)268.14380.24344.52296.34256.01
Book Value[Incl.RevalReserv]/Share (Rs.)268.14380.24344.52296.34256.01
Revenue From Operations / Share (Rs.)296.21389.17332.34295.08234.36
PBDIT / Share (Rs.)69.80121.72117.8388.4366.99
PBIT / Share (Rs.)59.45107.13104.4877.5158.77
PBT / Share (Rs.)58.98105.94103.5375.7158.64
Net Profit / Share (Rs.)46.5483.0175.2053.3344.12
NP After MI And SOA / Share (Rs.)46.5483.0175.2053.3344.12
PBDIT Margin (%)23.5631.2735.4529.9628.58
PBIT Margin (%)20.0627.5231.4326.2625.07
PBT Margin (%)19.9127.2231.1525.6525.02
Net Profit Margin (%)15.7121.3322.6218.0718.82
NP After MI And SOA Margin (%)15.7121.3322.6218.0718.82
Return on Networth / Equity (%)17.3521.8321.8217.9917.23
Return on Capital Employeed (%)21.2126.9829.0225.0622.23
Return On Assets (%)12.5617.5717.3014.0914.35
Total Debt / Equity (X)0.000.000.000.010.01
Asset Turnover Ratio (%)0.810.830.790.760.71
Current Ratio (X)2.493.503.132.713.13
Quick Ratio (X)1.772.281.941.891.97
Inventory Turnover Ratio (X)1.191.101.251.281.02
Dividend Payout Ratio (NP) (%)15.2511.5312.6724.2520.47
Dividend Payout Ratio (CP) (%)12.479.8110.7620.1317.25
Earning Retention Ratio (%)84.7588.4787.3375.7579.53
Cash Earning Retention Ratio (%)87.5390.1989.2479.8782.75
Interest Coverage Ratio (X)151.01102.45123.8965.11506.47
Interest Coverage Ratio (Post Tax) (X)101.6870.8780.0740.60334.59
Enterprise Value (Cr.)14945.6115321.6715384.3011819.918970.10
EV / Net Operating Revenue (X)3.994.595.324.574.36
EV / EBITDA (X)16.9514.6615.0215.2415.27
MarketCap / Net Operating Revenue (X)4.084.655.404.634.40
Retention Ratios (%)84.7488.4687.3275.7479.52
Price / BV (X)4.514.765.214.614.02
Price / Net Operating Revenue (X)4.084.655.404.634.40
EarningsYield0.030.040.040.030.04

Ajanta Pharma Ltd Profitability Ratios (%)

Ajanta Pharma Ltd Liquidity Ratios

Ajanta Pharma Ltd Liquidity Ratios (%)

Ajanta Pharma Ltd Interest Coverage Ratios (X)

Ajanta Pharma Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,874.92

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.

Overvalued: 13.80% compared to the current price ₹2175

Intrinsic Value: ₹2,067.52

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 4.94% compared to the current price ₹2175

Last 5 Year EPS CAGR: 10.27%

*Investments are subject to market risks

Strength and Weakness of Ajanta Pharma Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 34.83%, which is a positive sign.
  2. The company has higher reserves (1,897.54 cr) compared to borrowings (65.15 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 97.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 186.92, which may not be favorable.

Should I Buy Ajanta Pharma Ltd Share Now?

  • 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: 15.71%
      • 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: 21.21% (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%: 17.35% (Industry Average ROE: 13.2%)
      • 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): 101.68
      • 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: 1.77
      • 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: 37.2 (Industry average Stock P/E: 27.72)
      • 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: 0.00
      • 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:

FAQ

What is the latest fair value of Ajanta Pharma Ltd?

The latest fair value of Ajanta Pharma Ltd is 1874.92.

What is the Market Cap of Ajanta Pharma Ltd?

The Market Cap of Ajanta Pharma Ltd is 27,381 Cr..

What is the current Stock Price of Ajanta Pharma Ltd as on 17 April 2024?

The current stock price of Ajanta Pharma Ltd as on 17 April 2024 is 2,175.

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

In FY 2024, the High / Low of Ajanta Pharma Ltd stocks is ₹2,355/1,230.

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

The Stock P/E of Ajanta Pharma Ltd is 37.2.

What is the Book Value of Ajanta Pharma Ltd?

The Book Value of Ajanta Pharma Ltd is 277.

What is the Dividend Yield of Ajanta Pharma Ltd?

The Dividend Yield of Ajanta Pharma Ltd is 1.65 %.

What is the ROCE of Ajanta Pharma Ltd?

The ROCE of Ajanta Pharma Ltd is 22.6 %.

What is the ROE of Ajanta Pharma Ltd?

The ROE of Ajanta Pharma Ltd is 17.9 %.

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