Jefferies has a “buy” rating on the stock with a target price of ₹2,850 per share. Ajanta Pharma shares ended the previous session at ₹2,574 apiece.
It said Ajanta Pharma derives 70% of its revenue from the high-entry-barrier branded generic markets of India, Asia and Africa.
Ajanta Pharma’s superior geographical mix compared to its peers, focused approach, tailored strategies for key markets and strong execution has led to consistent double-digit revenue growth and earnings for the company, along with robust free cash flow generation, Jefferies said.
It has forecast a “strong” profit after tax CAGR of 19% of FY25 to FY27 for Ajanta Pharma.
In the third quarter, Ajanta Pharma recorded a 11% increase in its third quarter to ₹233 crore from ₹210 crore in the year-ago period.
Its revenue increased by 3.7% to ₹1,146 crore from ₹1,105.2 crore in the third quarter of the previous fiscal. The company’s EBITDA increased marginally to ₹320.8 crore from ₹320.2 crore in the year-ago period. Its margin contracted to 28% from 29% in the previous year.
Of the 15 analysts that have coverage on the stock, 12 have a “buy” rating and three have a “sell” rating.
Ajanta Pharma shares ended the previous session 4.2% higher. The stock has declined 22% in the last six months.
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