Motilal Oswal's research report onAjanta Pharma
AJP posted in-line sales of INR 4.8b (est. of INR 4.7b). EBITDA margin of 35.9%, adjusted for forex loss accounting for mark-to-market, was significantly better than estimate of 33.8% due to a superior product mix. Higher depreciation on account of commercialization of the Guwahati facility and lower-than-expected other income led to PBT growing at a lower rate than EBITDA.
OutlookWe remain positive on AJP, given its aggressive filings in the US and better-than-industry growth in India branded sales. We tweak FY18 estimates to factor in better EBITDA margin and a marginal fall in Africa sales. We maintain FY19 estimates and TP of 2,028 on 25x FY19E earnings. Reiterate Buy.
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