Exclusive Webinar :Don't miss the latest webinar on Global Investing with Passive Products on June 22, 11am

Hold Ajanta Pharmaceuticals; target of Rs 1010: ICICI Direct

ICICI Direct recommended hold rating on Ajanta Pharmaceuticals with a target price of Rs 1010 in its research report dated August August 01, 2019.

August 02, 2019 / 11:11 AM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Ajanta Pharmaceuticals

Revenues grew 19.8% YoY to Rs 611.9 crore (I-direct estimate: Rs 565.7 crore) mainly due to 67.2% YoY growth in the US to Rs 102 crore and 50% YoY growth in African tender business to Rs 81 crore. Domestic formulations grew 9% YoY to Rs 194 crore (I-direct estimate: Rs 200.7 crore). EBITDA margins declined 330 bps YoY to 27.5% (I-direct estimate: 28.0%) due to lower gross margins. EBITDA grew 6.9% YoY to Rs 168.4 crore (I-direct estimate: Rs 158.4 crore). Net profit grew 8.4% YoY to Rs 114.6 crore (I-direct estimate: Rs 109.5 crore) mainly in sync with the operational performance.


Overall, we expect double digit growth in revenues but dent in gross profit, EBITDA and net profit margins due to a change in the product mix (higher US contribution), new plant related expenses and higher depreciation. We arrive at our target price of Rs 1010 based on 20x FY21E EPS of ~Rs 50.5.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

first published: Aug 2, 2019 11:11 am

stay updated

Get Daily News on your Browser