Ajanta Pharma Ltd logo

Ajanta Pharma Ltd

AJANTPHARM NSE

Ajanta Pharma is primarily engaged in development, manufacturing and marketing of speciality pharmaceutical quality finished dosages.(Source : 202003-01 Annual Report Page No:70).

AI Verdict: BUY Confidence: 7%

Ajanta Pharma is a high-quality compounder with 25% 3-year ROE, near-zero debt, and 24% 3-year profit CAGR trading at 36.4x PE. While valuations are rich at 8.49x book value, the company's consistent execution, strong analyst consensus (87% buy ratings), and accelerating TTM profit growth of 23% justify a premium multiple.

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
₹40,244 Cr
Volatility
Moderate
P/E Ratio
37.62
EBITDA
₹1,567 Cr
Return on Equity
22.88%
Debt to Equity
0.04
Book Value
₹362.35
EPS
₹67.81
52W High
₹3,314.9
52W Low
₹2,329.9

Technical Indicators

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

1
  • Stock is trading at 8.98 times its book value

Growth Rate

Revenue Growth
18.60% ↗
Net Income Growth
14.73% ↗
Cash Flow Change
-54.27% ↘
ROE
-3.91% ↘
ROCE
-2.32% ↗
EBITDA Margin (Avg.)
-2.42% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Ajanta Pharma is a high-quality compounder with 25% 3-year ROE, near-zero debt, and 24% 3-year profit CAGR trading at 36.4x PE. While valuations are rich at 8.49x book value, the company's consistent execution, strong analyst consensus (87% buy ratings), and accelerating TTM profit growth of 23% justify a premium multiple.

Bull Case 8
  • Virtually debt-free balance sheet provides financial resilience and optionality for future investments or acquisitions
  • Exceptional ROE consistency — 27% last year, 25% 3-year average, and 23% over 10 years — indicating a durable competitive moat
  • Compounded profit growth accelerating from 10% over 10 years to 24% over 3 years and 23% TTM, showing improving earnings power
  • Overwhelming analyst consensus with 86.67% buy ratings (13 out of 15 analysts) signals institutional confidence
  • Healthy dividend payout of 50.1% with 0.91% yield demonstrates shareholder-friendly capital allocation despite growth investments
  • Revenue CAGR of 17% TTM outpacing the 10-year average of 12%, indicating demand acceleration in key markets
  • Stock CAGR of 26% over 3 years validates market re-rating of the business quality and growth trajectory
  • Market cap of Rs 38,376 Cr places it in the mid-large cap sweet spot — liquid enough for institutions yet small enough for meaningful growth runway
Bear Case 7
  • Elevated PE ratio of 36.4x leaves limited margin of safety — any earnings miss could trigger sharp de-rating
  • Trading at 8.49x price-to-book is significantly expensive versus pharma sector median of 3-4x, pricing in near-perfect execution
  • 10-year stock CAGR of only 12% despite strong fundamentals suggests extended periods of time correction are possible at current valuations
  • 5-year profit CAGR of only 12% versus 3-year CAGR of 24% shows earnings growth has been lumpy and inconsistent over longer periods
  • Dividend yield of just 0.91% offers minimal income cushion during potential market drawdowns
  • 5-year sales CAGR of 14% implies the business may face a growth ceiling without significant new product launches or geographic expansion
  • Only 1 sell and 1 hold rating out of 15 analysts suggests crowded positioning — contrarian risk if consensus expectations disappoint

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 3
  • Midcap fund selling pressure Jun 9

    23 midcap stocks saw holdings reduced in March 2026 quarter, with 13 declining more than 10% in CY26. Broader institutional reassessment coincides with Ajanta Pharma's block deal timing.

  • Promoter pledges shares for loan Jun 9

    Gabs Investments Pvt Ltd pledged 27.70 lakh shares (2.22% stake) to CTL Trusteeship Limited on June 2, 2026, to secure a new loan.

  • Geopolitical and raw material risks Jun 9

    Elara Capital flags geopolitical disruptions and raw material cost pressures as key risks despite maintaining an Accumulate rating with ₹3,115 target.

Positives 4
  • Strong FY26 results, PAT up 15% Jun 18

    Revenue up 17% to ₹5,453 cr, PAT up 15% to ₹1,056 cr, with US Generics surging 49% YoY. Q4 PAT beat analyst estimates by 23%.

  • US generics growth momentum 47% Jun 9

    US generics business grew 47% YoY in USD terms in Q4, with revenue and EBITDA 1-3% ahead of analyst estimates.

  • Institutional buyers at ₹1,024 cr block Jun 9

    Kotak MF bought 21.02 lakh shares (1.7% stake, ₹624 cr) and Aditya Birla Sun Life MF bought 13.48 lakh shares (1.1%, ₹400 cr) at ₹2,968/share. Stock rose 3.8% post-deal.

  • Promoter releases excess pledge Jun 19

    Promoter Ravi Agrawal released pledge on 23.26 lakh shares due to excess pledge, signaling improved promoter financial position.

Neutral 3
  • Promoter sells 2.76% stake via block Jun 9

    Ravi Agrawal Trust sold 34.5 lakh shares at ₹2,968/share worth ₹1,024 cr, reducing holding to 10.24%. Shares absorbed by large mutual funds.

  • 47th AGM set for July 16 Jun 15

    Ajanta Pharma will hold its 47th AGM on July 16, 2026 via video conferencing. Record date for report dispatch is June 12, 2026.

  • Analyst meet in Mumbai Jun 17-18 Jun 12

    Company hosting domestic institutional investor meeting on June 17-18, 2026 in Mumbai, with discussions based on published information.

TL;DR: Ajanta Pharma delivered strong FY26 results with 17% revenue growth and exceptional US generics momentum at 49% YoY, beating analyst estimates across metrics. The promoter stake sale was well-absorbed by marquee mutual funds, reflecting institutional confidence. Key risks include broader midcap fund selling, new promoter share pledges, and raw material cost pressures. The fundamental trend is improving, but valuation at 31.2x FY27E P/E leaves limited margin of safety if growth decelerates.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
882
1,021
1,028
1,105
1,054
1,145
1,187
1,146
1,170
1,303
1,354
1,375
1,422
Expenses
732
750
738
791
776
815
875
825
873
951
1,026
993
1,088
Operating Profit
149
271
291
314
278
330
311
321
297
351
328
382
333
OPM %
17%
27%
28%
28%
26%
29%
26%
28%
25%
27%
24%
28%
23%
Other Income
37
32
21
14
36
26
19
30
18
26
59
25
61
Interest
1
1
2
2
2
1
6
8
6
5
3
5
2
Depreciation
33
33
34
34
34
34
34
36
40
41
43
44
45
PBT
152
269
276
291
278
322
290
307
269
331
341
359
347
Tax %
20%
23%
29%
28%
27%
24%
25%
24%
16%
23%
24%
24%
23%
Net Profit
122
208
195
210
203
246
216
233
225
255
260
274
267
EPS in Rs
9.54
16.24
15.24
16.39
15.82
19.68
17.33
18.64
18.03
20.44
20.83
21.91
21.35
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
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
Expenses
968
1,155
1,292
1,467
1,489
1,904
1,889
2,408
2,934
3,037
3,379
3,953
Operating Profit
505
594
691
658
567
683
1,001
933
808
1,172
1,269
1,500
OPM %
34%
34%
35%
31%
28%
26%
35%
28%
22%
28%
27%
28%
Other Income
8
14
20
24
21
88
24
112
74
85
85
67
Interest
6
5
1
0
1
12
8
10
6
7
21
16
Depreciation
52
44
61
60
72
96
116
125
131
135
144
173
PBT
456
559
648
623
514
664
900
909
745
1,114
1,189
1,378
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
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
Div. Payout %
17%
17%
23%
0%
20%
24%
13%
11%
15%
79%
38%
33%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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%

Shareholding Pattern

As of Mar 2026
Promoters 66.25%
DIIs 18.37%
FIIs 8.26%
Public 6.35%
Others 0.77%
Government 0.01%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Apr 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
70.34%
70.34%
70.34%
70.34%
70.48%
70.48%
70.48%
66.11%
66.11%
66.21%
66.21%
66.21%
66.21%
66.21%
66.27%
66.26%
66.26%
66.26%
66.26%
66.25%
66.25%
66.25%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
8.54%
8.36%
9.11%
9.26%
8.86%
8.86%
8.53%
7.98%
8.26%
DIIs
10.88%
11.04%
11.51%
11.55%
11.61%
11.92%
12.15%
15.82%
15.98%
16.02%
14.70%
14.91%
16.01%
17.49%
17.41%
17.10%
17.02%
17.48%
17.50%
17.90%
18.58%
18.37%
Government
0.76%
0.43%
0.43%
0.45%
0.45%
0.45%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
Public
7.64%
7.42%
7.45%
7.29%
7.33%
7.45%
7.31%
7.17%
7.10%
6.94%
6.92%
7.21%
7.07%
6.91%
7.08%
6.71%
6.67%
6.63%
6.59%
6.53%
6.44%
6.35%
Others
10.37%
10.76%
10.26%
10.37%
10.13%
9.70%
10.06%
10.90%
10.82%
10.82%
12.16%
11.67%
10.70%
0.84%
0.86%
0.80%
0.79%
0.76%
0.79%
0.79%
0.76%
0.77%
No. of Shareholders
44,881
45,664
52,263
57,897
60,759
64,445
62,048
59,798
83,549
56,939
54,874
56,277
54,351
55,488
70,316
64,315
66,896
70,827
68,882
67,785
65,409
67,955

Documents

Frequently Asked Questions about Ajanta Pharma Ltd

What does Ajanta Pharma Ltd do?
Ajanta Pharma is primarily engaged in development, manufacturing and marketing of speciality pharmaceutical quality finished dosages.(Source : 202003-01 Annual Report Page No:70).
Where is Ajanta Pharma Ltd (AJANTPHARM) listed?
Ajanta Pharma Ltd is listed on the Indian stock exchanges. It is listed on NSE: AJANTPHARM and BSE: 532331. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Ajanta Pharma Ltd belong to?
Ajanta Pharma Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Ajanta Pharma Ltd?
Ajanta Pharma Ltd has a market capitalisation of approximately ₹40244.26 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Ajanta Pharma Ltd?
The Price-to-Earnings (PE) ratio of Ajanta Pharma Ltd is 37.62. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Ajanta Pharma Ltd?
Over the past 52 weeks, Ajanta Pharma Ltd has traded between a low of ₹2,329.9 and a high of ₹3,314.9. This range helps investors understand the stock's price volatility and recent trading levels.
Does Ajanta Pharma Ltd pay dividends?
Yes, Ajanta Pharma Ltd has a dividend yield of 0.86%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Ajanta Pharma Ltd?
Ajanta Pharma Ltd has a Return on Equity (ROE) of 22.88%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Ajanta Pharma Ltd on Tapetide?
On Tapetide, you can view Ajanta Pharma Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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).

Website ajantapharma.com
CEO Mr. Yogesh Mannalal Agrawal M.B.A
Employees 9,628
Listed 2000-05-29
Face Value ₹ 2
Issued Size 12,49,35,624

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