Ajanta Pharma Q4 Results Review - Higher Opex Leads To Ebitda/Profit After Tax Miss: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Ajanta Pharma Ltd.'s delivered in-line sales in Q4 FY24. However, Ebitda/profit after tax came in lower than our expectations, due to higher opex and higher tax outgo. Ajanta Pharma continued to outperform the industry in domestic formulation and Asia market. The performance is expected to improve in the Africa branded generics market going forward.We cut our estimates by 6%/7% for FY25/FY26, factoring inmoderation in U.S. growth prospects,higher logistics costs due to ongoing geopolitical tension, anda higher tax rate.We value Ajanta Pharma at 27 times 12 million forward earnings to arrive at a target price of Rs 2,565.We expect a 17% earnings compound annual growth rate over FY24-26, backed by a 12%/15% sales CAGR in DF/Asia segment and a 150 basis point margin expansion. With new launches, MR addition and increased market share in existing products, Ajanta Pharma remains in good stead to outperform in the branded generics market (70% of FY24 sales). Ajanta Pharma continues to build the abbreviated new drug application pipeline for the U.S. market and implement efforts toward consistent compliance. Maintain 'Buy'..Click on the attachment to read the full report:.Ajanta Pharma Shares Surge To Record After Q4 Profit Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Ajanta Pharma Q4 Results Review - Higher Opex Leads To Ebitda/Profit After Tax Miss: Motilal Oswal

Aims to consistently outperform the industry in branded generics.

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Ajanta Pharma Q4 Results Review - Higher Opex Leads To Ebitda/Profit After Tax Miss: Motilal Oswal

Aims to consistently outperform the industry in branded generics.

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