Buy Ajanta Pharma; target of Rs 2935: Motilal Oswal

Motilal Oswal is bullish on Ajanta Pharma has recommended buy rating on the stock with a target price of Rs 2935 in its research report dated July 30, 2024.

Broker Research

August 01, 2024 / 14:32 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Ajanta Pharma

Ajanta Pharma (AJP) delivered better-than-expected 1QFY25 performance, led by a superior show in the branded Africa segment, lower raw material costs, and controlled other expenses. The decline in institutional anti-malaria business and moderate growth in the US generics affected the overall performance to some extent. We raise our earnings by 8%/5% for FY25/FY26E factoring in: 1) a robust execution in the branded generics segments of Asia, Africa, and India; b) a subdued outlook in the anti-malaria business; and c) improved operating leverage. We value AJP at 30x 12M forward earnings to arrive at our TP of INR2,935.

Outlook

We raise our earnings by 8%/5% for FY25/FY26E factoring in: 1) a robust execution in the branded generics segments of Asia, Africa, and India; b) a subdued outlook in the anti-malaria business; and c) improved operating leverage. We value AJP at 30x 12M forward earnings to arrive at our TP of INR2,935.

For all recommendations report, click here