Ajanta Pharma
Ajanta Pharma
HealthcareKey Fundamentals
MidcapPharmaceuticalsHealthcareTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 25.2%
- Company has been maintaining a healthy dividend payout of 50.1%
Weaknesses
2- Stock is trading at 9.88 times its book value
- Promoter holding has decreased over last quarter: -2.76%
Growth Rate
AI Analysis — Bull vs Bear
Ajanta Pharma has a market capitalisation of about ₹44,271 Cr and trades at a P/E of 38.9 and a P/B of 9.76. It is almost debt free, earned an ROE of 27% last year (25% over 3 years), and grew TTM sales and profit by 20% and 22%. Over 10 years, sales and profit compounded at a more modest 12% and 10%, and promoter holding fell 2.76% last quarter.
- Returns on capital have stayed high: ROE was 27% last year, 25% over 3 years, and 23% over both 5 and 10 years.
- The company is almost debt free, so its 25% 3-year ROE comes from operations rather than leverage, and interest-rate risk on the balance sheet is limited.
- Growth has picked up recently. TTM sales grew 20% against a 10-year CAGR of 12%, and TTM profit grew 22% against a 10-year CAGR of 10%.
- Profit grew faster than sales over 3 years (24% vs 13% CAGR), which points to rising margins and operating leverage.
- The company pays out 50.1% of profits as dividends while still funding growth, which suggests steady internal cash generation.
- Shareholders have been rewarded over time: the stock returned 44% over 1 year, a 27% CAGR over 3 years, and a 20% CAGR over 5 years.
- Sales have grown steadily through different cycles, with CAGRs of 12% over 10 years, 14% over 5 years, and 13% over 3 years.
- The valuation is rich. At a P/B of 9.76 (about 9.79 on some measures), the market cap of about ₹44,271 Cr is nearly ten times the implied book value of roughly ₹4,536 Cr.
- A P/E of 38.9 gives an earnings yield of only about 2.6%, which leaves little room for error if the 22% TTM profit growth slows.
- Long-term profit growth is modest. Profit compounded at 10% over 10 years and 12% over 5 years, well below the growth implied by a P/E of 38.9.
- Promoter holding fell 2.76% last quarter. Whatever the reason, it adds share supply and may be read as a negative signal.
- The stock has run ahead of fundamentals. It returned 44% over 1 year while TTM profit grew 22%, so much of the gain came from the valuation multiple expanding.
- Despite a 50.1% payout, the dividend yield is only 0.9% because of the high valuation, so income support is limited.
- The 3-year profit CAGR of 24% is about double the 5-year CAGR of 12%, so part of the recent growth may be recovery from a weak base and hard to sustain.
- Over 10 years the stock compounded at just 10%, which shows how long periods of underperformance can follow high valuations.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Promoter pledges steadily being released Sep 28
Aayush Agrawal, as trustee of the Aayush Agrawal Trust, released pledges on 17,36,353 shares on Sep 18, bringing the encumbered stake down to 10.62% of total capital. A further release of 98,185 shares on Sep 28, both for loan repayment, left encumbered holding at 9.32%.
- FY26 ESG report shows emission cuts Sep 30
Ajanta Pharma's voluntary FY26 Sustainability Report shows a 47% cut in Scope 1 emissions and 16.6 MW of solar capacity. It also reports zero workplace fatalities and ₹23.73 crore in CSR spend.
TL;DR: Recent news flow for Ajanta Pharma is positive, led by promoter deleveraging. Encumbered holding fell from above 10.62% to 9.32% within September, and the company published strong FY26 ESG figures, including a 47% cut in Scope 1 emissions. The main risk is that about 9.32% of share capital is still pledged, which could add volatility if markets fall sharply. None of these items cover earnings, US FDA matters or business operations. The trend is improving, and further pledge releases plus upcoming quarterly results will be the key things to watch.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,021 | 1,028 | 1,105 | 1,054 | 1,145 | 1,187 | 1,146 | 1,170 | 1,303 | 1,354 | 1,375 | 1,422 | 1,626 |
| Expenses | 750 | 738 | 791 | 776 | 815 | 875 | 825 | 873 | 951 | 1,026 | 993 | 1,088 | 1,202 |
| Operating Profit | 271 | 291 | 314 | 278 | 330 | 311 | 321 | 297 | 351 | 328 | 382 | 333 | 424 |
| OPM % | 27% | 28% | 28% | 26% | 29% | 26% | 28% | 25% | 27% | 24% | 28% | 23% | 26% |
| Other Income | 32 | 21 | 14 | 36 | 26 | 19 | 30 | 18 | 26 | 59 | 25 | 61 | 71 |
| Interest | 1 | 2 | 2 | 2 | 1 | 6 | 8 | 6 | 5 | 3 | 5 | 2 | 3 |
| Depreciation | 33 | 34 | 34 | 34 | 34 | 34 | 36 | 40 | 41 | 43 | 44 | 45 | 44 |
| PBT | 269 | 276 | 291 | 278 | 322 | 290 | 307 | 269 | 331 | 341 | 359 | 347 | 447 |
| Tax % | 23% | 29% | 28% | 27% | 24% | 25% | 24% | 16% | 23% | 24% | 24% | 23% | 25% |
| Net Profit | 208 | 195 | 210 | 203 | 246 | 216 | 233 | 225 | 255 | 260 | 274 | 267 | 334 |
| EPS in Rs | 16.24 | 15.24 | 16.39 | 15.82 | 19.68 | 17.33 | 18.64 | 18.03 | 20.44 | 20.83 | 21.91 | 21.35 | 26.75 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,474 | 1,749 | 1,983 | 2,126 | 2,055 | 2,588 | 2,890 | 3,341 | 3,743 | 4,209 | 4,648 | 5,453 | 5,776 |
| Expenses | 968 | 1,155 | 1,292 | 1,467 | 1,489 | 1,904 | 1,889 | 2,408 | 2,934 | 3,037 | 3,379 | 3,953 | 4,309 |
| Operating Profit | 505 | 594 | 691 | 658 | 567 | 683 | 1,001 | 933 | 808 | 1,172 | 1,269 | 1,500 | 1,467 |
| OPM % | 34% | 34% | 35% | 31% | 28% | 26% | 35% | 28% | 22% | 28% | 27% | 28% | 25% |
| Other Income | 8 | 14 | 20 | 24 | 21 | 88 | 24 | 112 | 74 | 85 | 85 | 67 | 217 |
| Interest | 6 | 5 | 1 | 0 | 1 | 12 | 8 | 10 | 6 | 7 | 21 | 16 | 14 |
| Depreciation | 52 | 44 | 61 | 60 | 72 | 96 | 116 | 125 | 131 | 135 | 144 | 173 | 176 |
| PBT | 456 | 559 | 648 | 623 | 514 | 664 | 900 | 909 | 745 | 1,114 | 1,189 | 1,378 | 1,493 |
| Tax % | 32% | 26% | 22% | 25% | 25% | 30% | 27% | 22% | 21% | 27% | 23% | 23% | — |
| Net Profit | 310 | 416 | 507 | 469 | 387 | 468 | 654 | 713 | 588 | 816 | 920 | 1,056 | 1,135 |
| EPS in Rs | 23.47 | 31.49 | 38.4 | 35.5 | 29.56 | 35.73 | 50.38 | 55.63 | 45.89 | 63.7 | 73.68 | 84.52 | 90.84 |
| Div. Payout % | 17% | 17% | 23% | 0% | 20% | 24% | 13% | 11% | 15% | 79% | 38% | 33% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 18 | 18 | 18 | 18 | 18 | 18 | 17 | 17 | 25 | 25 | 25 | 25 |
| Reserves | 823 | 1,173 | 1,550 | 2,024 | 2,228 | 2,581 | 2,978 | 3,247 | 3,363 | 3,542 | 3,765 | 4,502 |
| Borrowings | 72 | 81 | 1 | 2 | 36 | 75 | 31 | 25 | 36 | 35 | 47 | 260 |
| Other Liabilities | 233 | 207 | 254 | 383 | 383 | 619 | 702 | 711 | 1,159 | 927 | 1,067 | 1,250 |
| Total Liabilities | 1,146 | 1,479 | 1,823 | 2,426 | 2,664 | 3,293 | 3,729 | 4,000 | 4,582 | 4,530 | 4,904 | 6,037 |
| Fixed Assets | 288 | 451 | 589 | 1,053 | 1,178 | 1,472 | 1,541 | 1,512 | 1,496 | 1,479 | 1,762 | 1,867 |
| CWIP | 170 | 240 | 339 | 61 | 262 | 132 | 108 | 153 | 209 | 256 | 176 | 258 |
| Investments | 60 | 86 | 182 | 190 | 78 | 79 | 176 | 147 | 535 | 349 | 464 | 588 |
| Other Assets | 629 | 703 | 713 | 1,122 | 1,147 | 1,610 | 1,904 | 2,188 | 2,341 | 2,446 | 2,502 | 3,324 |
| Total Assets | 1,146 | 1,479 | 1,823 | 2,426 | 2,664 | 3,293 | 3,729 | 4,000 | 4,582 | 4,530 | 4,904 | 6,037 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 279 | 326 | 609 | 281 | 375 | 457 | 576 | 562 | 792 | 785 | 1,157 | 529 |
| Investing | -158 | -209 | -383 | -256 | -223 | -224 | -282 | -74 | -560 | 65 | -377 | -429 |
| Financing | -105 | -117 | -202 | 0 | -147 | -129 | -318 | -460 | -108 | -1,051 | -733 | -168 |
| Net Cash Flow | 16 | 0 | 24 | 25 | 4 | 104 | -24 | 28 | 124 | -201 | 47 | -68 |
| Free Cash Flow | 176 | 29 | 313 | 19 | 32 | 228 | 417 | 431 | 618 | 646 | 840 | 169 |
| CFO/OP | 84 | 82 | 110 | 64 | 87 | 89 | 81 | 86 | 117 | 94 | 117 | 59 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 64 | 78 | 59 | 79 | 82 | 109 | 93 | 111 | 103 | 108 | 93 | 124 |
| Inventory Days | 159 | 180 | 186 | 315 | 415 | 276 | 434 | 347 | 283 | 283 | 308 | 289 |
| Days Payable | 109 | 128 | 157 | 224 | 214 | 202 | 212 | 143 | 147 | 159 | 155 | 168 |
| Cash Conversion Cycle | 114 | 130 | 88 | 170 | 282 | 184 | 315 | 315 | 240 | 233 | 246 | 246 |
| Working Capital Days | 56 | 78 | 65 | 103 | 113 | 108 | 126 | 140 | 83 | 119 | 97 | 111 |
| ROCE % | 57% | 52% | 46% | 34% | 24% | 27% | 32% | 29% | 23% | 32% | 32% | 35% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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69 extracted metrics + investor summaries across FY09–FY27.
Documents
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Company Information
Ajanta Pharma is primarily engaged in development, manufacturing and marketing of speciality pharmaceutical quality finished dosages.(Source : 202003-01 Annual Report Page No:70).
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