'Buy' Ajanta Pharma Shares Maintains Motilal Oswal, Sees 17% Upside — Check Target Price

Ajanta Pharma is implementing multiple strategic initiatives across focus branded generics markets of India, Asia, and Africa to sustain robust industry outperformance..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.After posting a strong 23% earnings compound annual growth rate over FY23-25, Ajanta Pharma Ltd. has entered a consolidation phase in FY26 due to incremental investments in MRs for both base and newer therapies. The brokerage, thus, expect earnings growth to moderate to 11% YoY in FY26.That said, the benefits of initiatives undertaken in FY26 should begin to accrue meaningfully in FY27, driving 20% YoY earnings growth. The brokerage has not yet factored in any semaglutide-related upside in FY28 earnings. Given the considerable scope of demand expansion and Ajanta Pharma’s robust franchise, the sales traction can be decent despite generics-led price erosion in Semaglutide across markets post-patent expiry.Motilal Oswal estimates Ajanta Pharma’s potential sales from this opportunity in Asia and Africa at $25-30 million on an annualized basis in H2 FY28. Assuming a gross margin of 70% and limited additional operating costs, the Ebitda margin of this product should be healthy at 50-55%, driving additional Ebitda for Ajanta Pharma. The brokerage value Ajanta Pharma at 30x 12M forward earnings to arrive at a target price of Rs 3,145. Reiterate Buy..Click on the attachment to read the full report:.Titan Shares In Focus: Brokerages Issue Positive Outlook On Tanishq's Latest Diamond Expertise Centre Venture.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.

'Buy' Ajanta Pharma Shares Maintains Motilal Oswal, Sees 17% Upside — Check Target Price

Valuations remain attractive, with Motilal Oswal reiterating a Buy rating on Ajanta Pharma, implying a 17% upside.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP