Buy Ajanta Pharma; target of Rs 3260: Motilal Oswal

Motilal Oswal's research report on Ajanta Pharma

Ajanta Pharma (AJP) exhibited largely in-line operational performance for the quarter. Superior performance in Domestic Formulation (DF)/US was partly offset by the weak institutional anti-malaria business. The high base of the previous year impacted YoY growth in the branded generics export segment. That said, AJP continues to strengthen its positioning in the chronic portfolio across these markets.

Outlook

We largely maintain our estimates for FY26/FY27. We value AJP at 34x 12M forward earnings to arrive at a TP of INR3,260.

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