Ajanta Pharma Q4 Results Review - Strong Growth In Branded Markets: Systematix

"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..Systematix Research Report.Ajanta Pharma Ltd. Q4 FY24 revenue and Ebitda were above expectations, led by strong growth in Africa Institutional sales, which reported 23% YoY growth and better than expected gross margins (due to softening of active pharma ingredient prices). Growth in branded markets was strong and in-line with our expectations. Asia, Africa, and India sales grew by 18%, 13% and 14% respectively on a YoY basis. Branded market sales growth is expected to be on a similar trajectory in FY25E. The U.S. revenue, which grew 16% on a YoY basis, should slow down in FY25 (mid-single digit growth expected). Price erosion is expected to be in the high single digit to low doubledigit range, while new approvals should offset the decline on account of price erosion. In Asia, the company has built a strong portfolio with chronic segment, contributing 75% of sales. Ajanta will add sales force to strengthen their presence and fortify their brand in these markets. We revise our forecasts on Ajanta Pharma to incorporate higher growth in branded markets. Based on our revised forecasts we expect Ajanta Pharma to deliver a revenue / Ebitda /profit after tax compound annual growth rate of 9.2% / 9.3% / 15.2% over FY24-FY26E. We revise our target PE multiple to 26 times and recommend a hold on Ajanta at current market price with a revised target price of Rs 2,235. The revised multiple is to account for the growing contribution of branded markets to the overall mix. Branded markets’ contribution is expected to reach 75% of sales in FY26E from 71% currently..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 - Strong Growth In Branded Markets: Systematix

U.S. business sales at Rs 2.61 billion, have shown a healthy growth of 32.5% YoY and 3.6% QoQ.

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Ajanta Pharma Q4 Results Review - Strong Growth In Branded Markets: Systematix

U.S. business sales at Rs 2.61 billion, have shown a healthy growth of 32.5% YoY and 3.6% QoQ.

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