Hold Ajanta Pharma; target of Rs 1520: Spa Research
Spa Research is bullish on Ajanta Pharma has recommended hold rating on the stock with a target price of Rs 1520 in its research report dated February 01, 2018.
March 08, 2018 / 06:18 PM IST
Spa Research's report on Ajanta Pharma
Ajanta Pharma reported a 10% YoY growth in revenues for the quarter driven by ~80% YoY growth in Asian sales to INR 1610 million. The US sales saw a growth of ~20% YoY during the quarter to INR 710 million. The company believes the severity of the pricing pressure to have reduced substantially in the US. The company maintained its EBITDA margins YoY at 33.6%, with a PAT growth of 3.6% YoY to INR 1475 million.
We expect the company's Revenues/EBITDA/PAT to grow at a CAGR of 15.7%/15%/16.2% between FY17-19E to INR 26.8 billion/INR 9.1 billion/INR 6.7 billion respectively. We recommend Hold rating at a Target Price of INR 1520 (6.8% upside) for a period of 12 months at FY19E PE of 20x.
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