Ajanta Pharma Limited (IN:AJANTPHARM)
:AJANTPHARM
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Ajanta Pharma Limited
(AJANTPHARM)
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Rating:79Outperform
Price Target:
₹3,472.00
▲(18.87% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial quality (notably the conservative balance sheet and solid profitability) and supportive technical momentum with price above major moving averages. The main offset is weaker FY2026 cash-flow conversion alongside margin compression, while valuation is relatively expensive (P/E ~33) with a modest dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and consistently strong ROE provide durable financial flexibility. This conservatism lets the company fund product launches, capex or M&A without immediate refinancing, absorb industry shocks, and maintain investment-grade-like optionality, supporting multi‑quarter resilience.
Negative Factors
Weakened cash conversion
Volatile and deteriorating cash conversion reduces predictability of internally generated funds for capex, dividends or debt repayment. If working-capital swings persist, the company may need external financing for growth or to sustain payouts, increasing financial risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and consistently strong ROE provide durable financial flexibility. This conservatism lets the company fund product launches, capex or M&A without immediate refinancing, absorb industry shocks, and maintain investment-grade-like optionality, supporting multi‑quarter resilience.
Read all positive factors
Ajanta Pharma Limited (AJANTPHARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹401.17B
Dividend Yield1.04%
Average Volume (3M)2.10K
Price to Earnings (P/E)33.2
Beta (1Y)0.36
Revenue Growth17.31%
EPS Growth14.93%
CountryIN
Employees8,073
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)77.91
Shares Outstanding124,935,620
10 Day Avg. Volume2,991
30 Day Avg. Volume2,099
Financial Highlights & Ratios
PEG Ratio2.23
Price to Book (P/B)7.74
Price to Sales (P/S)6.43
P/FCF Ratio231.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)100.1
Revenue Forecast (FY)₹62.30B
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-mal...
How the Company Makes Money
Ajanta Pharma primarily makes money by selling finished pharmaceutical formulations (branded generics) across domestic and international markets. Revenue is generated from (1) India business: sales of prescription-led branded products to the domes...
Ajanta Pharma Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.12B | 54.53B | 45.88B | 41.62B | 37.08B | 32.84B |
| Gross Profit | 33.62B | 28.05B | 34.60B | 30.46B | 25.91B | 23.97B |
| EBITDA | 14.31B | 14.98B | 13.54B | 12.57B | 8.81B | 10.44B |
| Net Income | 9.74B | 10.56B | 9.20B | 8.16B | 5.88B | 7.13B |
Balance Sheet | ||||||
| Total Assets | 56.72B | 61.55B | 50.15B | 46.38B | 46.79B | 40.56B |
| Cash, Cash Equivalents and Short-Term Investments | 9.40B | 6.65B | 6.15B | 4.60B | 8.44B | 3.28B |
| Total Debt | 2.46B | 2.60B | 474.20M | 352.80M | 356.30M | 250.30M |
| Total Liabilities | 13.57B | 16.28B | 12.25B | 10.71B | 12.91B | 7.91B |
| Stockholders Equity | 43.15B | 45.27B | 37.90B | 35.67B | 33.88B | 32.64B |
Cash Flow | ||||||
| Free Cash Flow | 1.10B | 1.51B | 8.39B | 6.33B | 6.17B | 4.13B |
| Operating Cash Flow | 2.84B | 5.16B | 11.57B | 7.85B | 7.92B | 5.62B |
| Investing Cash Flow | -5.49B | -4.29B | -3.77B | 653.90M | -5.60B | -741.00M |
| Financing Cash Flow | 1.82B | -1.55B | -7.33B | -10.51B | -1.08B | -4.60B |
Ajanta Pharma Limited Technical Analysis
Positive
2920.85
Price Trends
2915.64
Positive
2862.24
Positive
2699.60
Positive
Market Momentum
93.98
Negative
67.47
Neutral
81.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AJANTPHARM, the sentiment is Positive. The current price of 2920.85 is below the 20-day moving average (MA) of 2951.30, above the 50-day MA of 2915.64, and above the 200-day MA of 2699.60, indicating a bullish trend. The MACD of 93.98 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 81.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AJANTPHARM.
Ajanta Pharma Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹401.17B | 33.18 | ― | 1.04% | 17.31% | 14.93% | |
74 Outperform | ₹341.16B | 45.71 | ― | 0.86% | 5.87% | 6.56% | |
73 Outperform | ₹417.59B | 27.58 | ― | 0.28% | 8.92% | 24.73% | |
71 Outperform | ₹355.74B | 27.20 | ― | 1.07% | 14.50% | 47.08% | |
59 Neutral | ₹716.47B | 48.00 | ― | 0.15% | 22.67% | 147.76% | |
53 Neutral | ₹660.48B | 35.61 | ― | 0.24% | 25.44% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Ajanta Pharma Limited Corporate Events
Ajanta Pharma Receives US FDA Form 483 With Five Observations at Paithan Plant
Apr 22, 2026
Ajanta Pharma has announced that the U.S. Food and Drug Administration has completed an inspection of its Paithan manufacturing facility in Maharashtra, conducted from April 13 to April 21, 2026. The inspection concluded with the issuance of a For...
Ajanta Pharma Denies Involvement in Rumoured Restaurant Brands Asia Acquisition
Feb 10, 2026
Ajanta Pharma has issued a formal clarification denying media reports that it plans to raise Rs 2,000 crore to acquire Restaurant Brands Asia and diversify into the quick-service restaurant sector. The company stated that the reference to Ajanta P...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.