Get App


Associate Partners

Last Updated : May 03, 2019 01:39 PM IST | Source:

Hold Ajanta Pharmaceuticals; target of Rs 1060: ICICI Direct

ICICI Direct recommended hold rating on Ajanta Pharmaceuticals with a target price of Rs 1060 in its research report dated May 02, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Ajanta Pharmaceuticals

Revenues declined 2.9% YoY to Rs 515.2 crore (I-direct estimate: Rs 463.4 crore). The 7.4% YoY growth in domestic market to Rs 159 crore (I-direct estimate: Rs 154 crore) and 81% YoY growth in US business to Rs 76 crore (I-direct estimate: Rs 74 crore) was largely offset by 29.7% YoY decline in African business to Rs 121 crore (I-direct estimate: Rs 91.3 crore). EBITDA margins declined 164 bps YoY to 24.7% (I-direct estimate: 22.0%) due to lower gross margins. EBITDA declined 8.9% YoY to Rs 127.1 crore (I-direct estimate: Rs 101.9 crore). Net profit declined 5.9% YoY to Rs 88.9 crore (I-direct estimate: Rs 68.2 crore) mainly in sync with the operational performance.


Overall, we expect some slowdown in sales but improvement in profitability on the back of better operating leverage and tax benefits. We arrive at our target price of Rs 1060 based on 18x FY21E EPS of ~Rs 58.9.

For all recommendations report, click here

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

Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 3, 2019 01:39 pm
More From
Follow us on
Available On
PCI DSS Compliant