AJANTPHARM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Let’s dive into Ajanta Pharma Ltd. (AJANTPHARM) — a specialty pharmaceutical company showing stellar operational efficiency, consistently strong financials, and a robust global presence, albeit trading with a valuation premium.

💊 Core Financials & Profitability

ROCE: 32.4%, ROE: 24.9% — outstanding figures, indicative of disciplined capital usage and healthy margins.

EPS: ₹74.4 — impressive per-share earnings for the current price level.

Qtr PAT: ₹255 Cr vs ₹225 Cr Prev Qtr — steady upward momentum, with Qtr Profit Var: +3.89%, pointing to sustained profitability.

Debt-to-Equity: 0.01 — virtually debt-free, enhancing financial stability and reducing risk.

📊 Valuation Snapshot

Metric Value Commentary

P/E Ratio 37.9 ⚠️ Slightly overvalued compared to Industry PE: 34.0

P/B Ratio ~9.32 Premium-priced, reflective of strong brand equity

PEG Ratio 4.35 🚩 Price growth outpacing earnings — a valuation stretch

Intrinsic Value Slightly Below CMP Fundamentals support long-term value; short-term overvaluation exists

🌐 Business Model & Competitive Advantage

Focuses on branded generics, dermatology, ophthalmology, cardiology, and anti-malarial therapeutics.

Strong presence in emerging markets like Africa, Asia, CIS, with exports accounting for a significant revenue share.

High R&D efficiency, lean cost structure, and regulatory compliance bolster its long-term prospects.

Institutional sentiment

FII Hold: Stable

DII Hold ↑ +0.02% — minor uptick signals neutral-to-positive outlook

📉 Technical Indicators

RSI: 63.4 — nearing overbought territory, suggests caution for fresh entry.

MACD: 51.7 — strong bullish sentiment, indicating upward momentum.

Trading above DMA 50 & DMA 200, reinforcing bullish technical structure.

52W Range: ₹2,022–₹3,486, CMP at ₹2,823 — healthy consolidation zone below the peak.

📍 Entry Zone & Investment Guidance

Suggested Entry Zone: ₹2,650–₹2,800 — near support and DMA levels, offering accumulation opportunities.

Long-Term View

Ideal for long-term investors seeking exposure to defensible healthcare and global pharmaceutical themes.

Caution on valuation; current PEG and P/E suggest moderating price expectations.

Key watchpoints: regulatory updates, US market performance, new launches, and pricing pressure trends.

Want me to stack it against peers like Alkem, IPCA, or Torrent Pharma? It could lend sharper insight into the competitive frontier you're scouting 🧪📈.

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