NSEI:AJANTPHARM

Stock Analysis Report

Executive Summary

Ajanta Pharma Limited, a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Ajanta Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AJANTPHARM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

AJANTPHARM

-2.8%

IN Pharmaceuticals

-1.5%

IN Market


1 Year Return

-10.0%

AJANTPHARM

-12.0%

IN Pharmaceuticals

3.8%

IN Market

Return vs Industry: AJANTPHARM exceeded the Indian Pharmaceuticals industry which returned -12% over the past year.

Return vs Market: AJANTPHARM underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

AJANTPHARMIndustryMarket
7 Day-1.6%-2.8%-1.5%
30 Day2.2%6.1%4.1%
90 Day-2.2%3.7%7.4%
1 Year-10.0%-10.0%-11.3%-12.0%5.9%3.8%
3 Year-45.0%-45.7%-15.6%-17.3%34.7%27.6%
5 Year0.9%-1.6%-13.8%-16.3%37.0%31.1%

Price Volatility Vs. Market

How volatile is Ajanta Pharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ajanta Pharma undervalued compared to its fair value and its price relative to the market?

22.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJANTPHARM (₹975.55) is trading above our estimate of fair value (₹543.37)

Significantly Below Fair Value: AJANTPHARM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AJANTPHARM is poor value based on its PE Ratio (22.1x) compared to the Pharmaceuticals industry average (16.4x).

PE vs Market: AJANTPHARM is poor value based on its PE Ratio (22.1x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: AJANTPHARM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AJANTPHARM is overvalued based on its PB Ratio (3.4x) compared to the IN Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is Ajanta Pharma forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJANTPHARM's forecast earnings growth (16.6% per year) is above the savings rate (7.6%).

Earnings vs Market: AJANTPHARM's earnings (16.6% per year) are forecast to grow slower than the Indian market (19% per year).

High Growth Earnings: AJANTPHARM's earnings are forecast to grow, but not significantly.

Revenue vs Market: AJANTPHARM's revenue (11.8% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: AJANTPHARM's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJANTPHARM's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Ajanta Pharma performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJANTPHARM has high quality earnings.

Growing Profit Margin: AJANTPHARM's current net profit margins (17.2%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: AJANTPHARM's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: AJANTPHARM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AJANTPHARM had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (19.8%).


Return on Equity

High ROE: AJANTPHARM's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ajanta Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: AJANTPHARM's short term assets (₹14.6B) exceeds its short term liabilities (₹5.0B)

Long Term Liabilities: AJANTPHARM's short term assets (14.6B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: AJANTPHARM's debt to equity ratio (1.6%) is considered satisfactory

Reducing Debt: AJANTPHARM's debt to equity ratio has reduced from 14.1% to 1.6% over the past 5 years.

Debt Coverage: AJANTPHARM's debt is well covered by operating cash flow (1083.5%).

Interest Coverage: AJANTPHARM's interest payments on its debt are well covered by EBIT (314x coverage).


Balance Sheet

Inventory Level: AJANTPHARM has a high level of physical assets or inventory.

Debt Coverage by Assets: AJANTPHARM's debt is covered by short term assets (assets are 36x debt).


Next Steps

Dividend

What is Ajanta Pharma's current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: AJANTPHARM's dividend (1.33%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: AJANTPHARM's dividend (1.33%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: AJANTPHARM's dividend payments have been volatile in the past 10 years.

Growing Dividend: AJANTPHARM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), AJANTPHARM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AJANTPHARM's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

What is the CEO of Ajanta Pharma's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average board tenure


CEO

Yogesh Agrawal (47yo)

11.9yrs

Tenure

₹98,994,000

Compensation

Mr. Yogesh Mannalal Agrawal, M.B.A, has been Managing Director at Ajanta Pharma Ltd. since December 14, 2007. Mr. Agrawal is handling global business of Ajanta Pharma Ltd. He has handled various aspects of ...


CEO Compensation Analysis

Compensation vs Market: Yogesh's total compensation ($USD1.37M) is above average for companies of similar size in the Indian market ($USD350.56K).

Compensation vs Earnings: Yogesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

6.0yrs

Average Tenure

69yo

Average Age

Experienced Board: AJANTPHARM's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,018,10704 Apr 19
Jeffrey William
EntityIndividual
Shares1,000
Max Price₹1,018.11
Sell₹1,160,00007 Jan 19
Jagdish Joshi
EntityIndividual
Shares1,000
Max Price₹1,160.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Madhusudan Agrawal (64yo)

    Executive Vice Chairman of the Board

    • Tenure: 11.9yrs
    • Compensation: ₹14.95m
  • Yogesh Agrawal (47yo)

    MD & Executive Director

    • Tenure: 11.9yrs
    • Compensation: ₹98.99m
  • Rajesh Agrawal (43yo)

    Joint MD & Director

    • Tenure: 6.6yrs
    • Compensation: ₹98.99m
  • H. Agrawal (59yo)

    President of International Business

    • Tenure: 0yrs
    • Compensation: ₹4.61m
  • Arvind Agrawal (56yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Gaurang Shah

    Assistant VP of Legal & Company Secretary

    • Tenure: 0yrs

Board Members

  • Chandrakant Khetan (73yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹652.00k
  • Ramesh Jhawar (69yo)

    Director of Ajanta Pharma USA Inc.

    • Tenure: 0yrs
    • Compensation: ₹25.50m
  • Mannalal Agrawal (72yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹396.00k
  • Madhusudan Agrawal (64yo)

    Executive Vice Chairman of the Board

    • Tenure: 11.9yrs
    • Compensation: ₹14.95m
  • Yogesh Agrawal (47yo)

    MD & Executive Director

    • Tenure: 11.9yrs
    • Compensation: ₹98.99m
  • Rajesh Agrawal (43yo)

    Joint MD & Director

    • Tenure: 6.6yrs
    • Compensation: ₹98.99m
  • K. Vishwanathan (73yo)

    Non Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹565.00k
  • Prabhakar Dalal

    Non Executive Independent Director

    • Tenure: 5.4yrs
    • Compensation: ₹565.00k
  • Anjana Grewal

    Non Executive Independent Director

    • Tenure: 5.4yrs
    • Compensation: ₹534.00k
  • Sam Gioskos

    Director of Ajanta Pharma Philippines Inc.

    • Tenure: 0yrs

Company Information

Ajanta Pharma Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ajanta Pharma Limited
  • Ticker: AJANTPHARM
  • Exchange: NSEI
  • Founded: 1973
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹85.643b
  • Shares outstanding: 87.26m
  • Website: https://www.ajantapharma.com

Number of Employees


Location

  • Ajanta Pharma Limited
  • 98, Ajanta House
  • Govt Industrial Area
  • Mumbai
  • Maharashtra
  • 400067
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532331BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2000
AJANTPHARMNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2000

Biography

Ajanta Pharma Limited, a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in India and internationally. The company offers products in various therapeutic segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 12:48
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.