Add Ajanta Pharma, target price Rs 2440: HDFC Securities
Ajanta Pharma Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 18342.12 Crore) operating in Pharmaceuticals sector.
By ETMarkets.com | Updated:
iStock
HDFC Securities has add call on Ajanta Pharma with a target price of Rs 2440. The current market price of Ajanta Pharma Ltd. is Rs 2136.05. Time period given by analyst is one year when Ajanta Pharma Ltd. price can reach defined target. .
Ajanta Pharma Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 18342.12 Crore) operating in Pharmaceuticals sector.
Ajanta Pharma Ltd. key Products/Revenue Segments include Pharmaceutical Products, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 914.34 Crore, up 17.13 % from last quarter Total Income of Rs 780.62 Crore and up 26.86 % from last year same quarter Total Income of Rs 720.76 Crore. Company has reported net profit after tax of Rs 195.94 Crore in latest quarter.
Investment Rationale
Ajanta’s Q2 revenue/EBITDA came in 8%/9% ahead of expectations, primarily on account of robust growth in Indian and African businesses. EBITDA margin, at 29.7%, was broadly in line as higher other expenses were offset by savings in staff cost. The company has guided towards higher opex of ~INR2.25bn per quarter vs. the average run-rate of ~INR2bn in preceding quarters, which is likely to offset some benefits on account of operating leverage. However, the growth outlook for the branded generic business, such as the India, Africa (outperformance to continue) and US generics business (new launches led), remains strong. The brokerage expects 15%/16% revenue/EPS CAGRs over FY21-24e. It revises EPS by 4%/-5% for FY22/23 to factor in Q2 beat/ margin moderation and roll forward to Sep’23 EPS to arrive at a TP of INR2,440/sh, based on 23x Sep’23e EPS.
Promoter/FII Holdings
Promoters held 70.34 per cent stake in the company as of 30-Sep-2021, while FIIs owned 8.72 per cent, DIIs 12.07 per cent.
Ajanta Pharma Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 18342.12 Crore) operating in Pharmaceuticals sector.
Ajanta Pharma Ltd. key Products/Revenue Segments include Pharmaceutical Products, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 914.34 Crore, up 17.13 % from last quarter Total Income of Rs 780.62 Crore and up 26.86 % from last year same quarter Total Income of Rs 720.76 Crore. Company has reported net profit after tax of Rs 195.94 Crore in latest quarter.
Investment Rationale
Ajanta’s Q2 revenue/EBITDA came in 8%/9% ahead of expectations, primarily on account of robust growth in Indian and African businesses. EBITDA margin, at 29.7%, was broadly in line as higher other expenses were offset by savings in staff cost. The company has guided towards higher opex of ~INR2.25bn per quarter vs. the average run-rate of ~INR2bn in preceding quarters, which is likely to offset some benefits on account of operating leverage. However, the growth outlook for the branded generic business, such as the India, Africa (outperformance to continue) and US generics business (new launches led), remains strong. The brokerage expects 15%/16% revenue/EPS CAGRs over FY21-24e. It revises EPS by 4%/-5% for FY22/23 to factor in Q2 beat/ margin moderation and roll forward to Sep’23 EPS to arrive at a TP of INR2,440/sh, based on 23x Sep’23e EPS.
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Promoter/FII Holdings
Promoters held 70.34 per cent stake in the company as of 30-Sep-2021, while FIIs owned 8.72 per cent, DIIs 12.07 per cent.
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