Buy Ajanta Pharmaceuticals; target of Rs 1385: ICICI Direct

ICICI Direct's research report on Ajanta Pharmaceuticals

Ajanta Pharma is a focused player in branded, which constitutes ~72% of overall sales, spread across geographies including India. As of Q3FY23, overall exports: domestic formulations ratio was at 69:31 • Among exports, Asia accounts for ~34% of export formulations, Africa 26% & US ~40%. The company also participates in anti-malarial tenders in Africa (included in Africa).

Outlook

We maintain BUY as it remains a compelling play on branded generics (~72% exposure) with strong execution track record and financials. Valued at Rs 1385 i.e. 18x P/E on FY25E EPS of Rs 76.8.