Ajanta Pharma Limited (AJANTPHARM) AI Stock Analysis

• Market Cap: ₹304.66B
• Dividend Yield: 2.26%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.39
• Revenue Growth: 10.92%
• EPS Growth: 9.76%
• Country: IN
• Employees: 8,073
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 20.43
• Shares Outstanding: 124,935,620
• 10 Day Avg. Volume: 2,991
• 30 Day Avg. Volume: 2,099
• PEG Ratio: 2.64
• Price to Book (P/B): 8.64
• Price to Sales (P/S): 7.05
• P/FCF Ratio: 39.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,200.00
• Price Target Upside: 29.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ₹2,948.00 ▲(19.40% Upside)

Ajanta Pharma Limited's overall stock score is driven by its strong financial performance, which indicates robust growth and stability. The technical analysis suggests a neutral to slightly bearish short-term trend, while the valuation indicates a high P/E ratio, balanced by a moderate dividend yield. The absence of earnings call data and corporate events does not impact the score.

Ajanta Pharma Limited Business Overview & Revenue Model

Company Description

Ajanta Pharma Limited, a specialty pharmaceutical formulation company, together with its subsidiaries, develops, manufactures, and markets finished dosages. The company markets and serves various therapeutic segments, such as anti-biotic, anti-malarial, anti-diabetic, cardiology, gynecology, pediatric, respiratory and general health products, dermatology, ophthalmology, and pain management areas. It also provides multivitamins, antibiotics, eye drops, cough syrups, etc. The company serves in India, Africa, rest of Asia, the United States, and internationally. It supplies its products to government bodies, including armed forces, government hospitals, canteens, stores department, etc. The company was founded in 1973 and is headquartered in Mumbai, India.

How the Company Makes Money

Ajanta Pharma generates revenue primarily through the sale of its pharmaceutical products, which encompass a wide range of branded generics and specialty pharmaceuticals. The company's revenue model is built on its ability to penetrate both domestic and international markets, with significant earnings derived from exports to countries in Africa, Asia, and the Middle East. Key revenue streams include prescription medications, over-the-counter products, and a growing presence in the specialty segment. Additionally, Ajanta Pharma benefits from strategic partnerships with healthcare providers and distributors, enhancing its market reach and operational efficiency. The company's investments in research and development for new drug formulations also contribute to its long-term revenue growth by ensuring a continuous pipeline of innovative products.

Ajanta Pharma Limited Financial Statement Overview

Summary

Ajanta Pharma Limited exhibits strong financial health with robust revenue and profit growth, solid balance sheet stability, and effective cash flow management. The company is well-positioned to capitalize on market opportunities and sustain its competitive advantage in the pharmaceutical industry. Risks appear well-managed with low leverage and efficient operations.

Income Statement

Ajanta Pharma Limited has demonstrated strong revenue growth over the past years, with a consistent increase in total revenue from 2020 to 2025. The gross profit margin has remained robust, reflecting effective cost management and product pricing strategies. Net profit margins have improved, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, suggesting operational efficiency and the ability to generate earnings from core business activities.

Balance Sheet

The company's balance sheet shows a solid equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio is high, showcasing a strong reliance on equity financing. Return on equity has improved, reflecting efficient use of shareholder funds to generate profits. The company's assets have grown steadily, supporting business expansion.

Cash Flow

Ajanta Pharma Limited has shown strong cash flow generation with positive free cash flow growth, supporting reinvestment and shareholder returns. The operating cash flow to net income ratio is favorable, indicating effective conversion of net income into cash. The free cash flow to net income ratio is also healthy, reflecting good cash flow management and financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.06B	46.48B	42.09B	37.43B	32.84B	28.47B
Gross Profit	37.27B	35.77B	30.93B	26.32B	23.97B	21.65B
EBITDA	13.48B	12.68B	12.57B	8.81B	10.44B	10.24B
Net Income	9.30B	9.20B	8.16B	5.88B	7.13B	6.54B
Balance Sheet
Total Assets	0.00	50.15B	46.38B	46.79B	40.56B	37.79B
Cash, Cash Equivalents and Short-Term Investments	6.14B	6.15B	4.60B	8.44B	3.28B	3.78B
Total Debt	0.00	474.20M	352.80M	356.30M	250.30M	313.60M
Total Liabilities	-37.90B	12.25B	10.71B	12.91B	7.91B	7.83B
Stockholders Equity	37.90B	37.90B	35.67B	33.88B	32.64B	29.96B
Cash Flow
Free Cash Flow	0.00	8.39B	6.33B	6.17B	4.13B	4.05B
Operating Cash Flow	0.00	11.57B	7.85B	7.92B	5.62B	5.76B
Investing Cash Flow	0.00	-3.77B	653.90M	-5.60B	-741.00M	-2.82B
Financing Cash Flow	0.00	-7.33B	-10.51B	-1.08B	-4.60B	-3.18B

Ajanta Pharma Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2469.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AJANTPHARM, the sentiment is Neutral. The current price of 2469 is above the 20-day moving average (MA) of 2425.85, below the 50-day MA of 2502.60, and below the 200-day MA of 2609.01, indicating a neutral trend. The MACD of -18.93 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AJANTPHARM.

Ajanta Pharma Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBCHEPHARM	―	₹264.63B	38.46	―	0.91%	11.56%	16.30%
AJANTPHARM	―	₹304.66B	32.75	―	2.26%	10.92%	9.76%
GLAND	―	₹318.91B	41.40	―	0.94%	-2.34%	6.64%
LAURUSLABS	―	₹485.71B	95.39	―	0.16%	25.83%	421.20%
IPCALAB	―	₹326.29B	41.91	―	0.31%	11.49%	35.00%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	―	₹522.88B	69.69	―	0.13%	10.99%	―

Ajanta Pharma Limited Corporate Events

Ajanta Pharma to Consider Interim Dividend Declaration

Ajanta Pharma Limited has announced that its Board of Directors will meet on November 3, 2025, to consider the declaration of the first interim dividend for the financial year ending March 31, 2026. Additionally, the company has set November 10, 2025, as the record date for the payment of the interim dividend, if declared. This decision is part of the company’s regular financial proceedings and could impact shareholder returns and market perception.

Ajanta Pharma to Consider Interim Dividend for FY 2026

Ajanta Pharma Limited has announced that its Board of Directors will meet on November 3, 2025, to consider the declaration of the first interim dividend for the financial year ending March 31, 2026. The company has set November 10, 2025, as the record date for the dividend payment, pending approval. This decision is part of the company’s ongoing financial management and could impact shareholder returns, reflecting the company’s financial health and commitment to returning value to its investors.

Ajanta Pharma Reports Strong Q1 FY 2026 Financial Results

Ajanta Pharma Limited reported a robust financial performance for the first quarter of FY 2026, with a 14% increase in revenue from operations, reaching Rs. 1,303 crore. The company’s EBITDA grew by 6% to Rs. 351 crore, while profit after tax increased by 4% to Rs. 255 crore. Excluding forex losses, EBITDA and PAT showed even stronger growth at 14% and 12%, respectively. The company also demonstrated strong cash flow metrics, with an 80% EBITDA to CFO conversion and an 82% FCF to PAT conversion. Segment-wise, the US Generic market showed the highest growth at 36%, while the Africa Institution segment saw a decline. Overall, Ajanta Pharma’s financial results reflect its strong market positioning and operational efficiency.