Buy Ajanta Pharma, target price Rs 2080: Motilal Oswal

Motilal Oswal has buy call on Ajanta Pharma with a target price of Rs 2080. The current market price of Ajanta Pharma is Rs 1611.55. 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 13758.77 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 31-03-2022, the company reported a Consolidated Total Income of Rs 899.77 Crore, up 4.39 % from last quarter Total Income of Rs 861.94 Crore and up 18.49 % from last year same quarter Total Income of Rs 759.37 Crore. Company reported net profit after tax of Rs 151.21 Crore in latest quarter.

Investment Rationale
The brokerage believes AJP will sustain outperformance in the branded generics segment of DF/Africa/Asia aided by new launches, market share gains in existing products and price hikes to some extent. While the near-term outlook would be subdued, the higher pace of filings/approvals would improve the growth prospects in the US generics segment.

Promoter/FII Holdings
Promoters held 70.48 per cent stake in the company as of 31-Mar-2022, while FIIs owned 8.64 per cent, DIIs 12.28 per cent.