Ajanta Pharma Q3 Results Review: Systematix Upgrades The Stock To 'Buy', Revises Target Price — Here's Why

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Systematix Research Report

Ajanta Pharma Ltd. Q3 FY25 revenue came slightly below expectation, while Ebitda and PAT were largely in line. Ajanta Pharma remains on track to deliver low to mid teens growth in branded market and mid-single digit growth in the US generic space for FY25.

During the year, Ajanta Pharma has enhanced its investment in manpower and sales which is reflecting in other expense and employee cost growing faster than revenue. The enhanced investment is with an intention to expand reach in the addressable market.

During the quarter, the company has forayed into Nephrology and Gynecology segments in domestic markets. The new launches in these new therapy areas will be into categories that are fast growing.

In the US, the company expects stronger growth in FY26 (as compared to FY25). We revise our target PE multiple to 35 times FY27E EPS and upgrade Ajanta to Buy at current market price with a revised target price of Rs 3,460.

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