Be a PRO & get up to 50% off on select brands. Explore Now

Hold Ajanta Pharmaceuticals; target of Rs 1100: ICICI Direct

ICICI Direct recommended hold rating on Ajanta Pharmaceuticals with a target price of Rs 1100 in its research report dated February 01, 2019.

February 19, 2019 / 05:41 PM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Ajanta Pharmaceuticals

Ajanta Pharma’s Q3FY19 results were below I-direct estimates on all fronts mainly due to lower-than-exacted export formulation sales Revenues declined 17.4% YoY to Rs 485.1 crore (I-direct estimate: Rs 522.6 crore) due to 26.7% YoY decline in export formulations to Rs 304 crore (I-direct estimate: Rs 344.5 crore). Domestic revenues grew 8.7% YoY to Rs 174 crore EBITDA margins declined to 22.1% from 33.6% in Q3FY18 (I-direct estimates: 25.4%) due to lower gross margins and higher expenditure pertaining to new plants commissioned. EBITDA declined 45.7% YoY to Rs 107.3 crore (I-direct estimate: Rs 132.7 crore) Net profit declined 54.6% YoY to Rs 66.9 crore (I-direct estimate: Rs 95.8 crore) mainly due to a weaker operational performance.


We roll over our estimates to FY21 and accordingly arrive at our new target price of Rs 1100 based on 18x FY21E EPS of ~Rs 61.

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.

Broker Research
first published: Feb 19, 2019 05:41 pm

stay updated

Get Daily News on your Browser