Buy Ajanta Pharmaceuticals; target of Rs 1505: 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 Q2FY23, overall exports: domestic formulations ratio was at 66:34 • Among exports, Asia accounts for ~41% of export formulations, Africa 29% and US 30%. 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 1505 i.e. 22x P/E on FY24E EPS of Rs 68.3.