04.08.2019

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 
AJANTA PHARMA LTD (CMP955)

ENTRY LEVEL: 900 to 930 STOP LOSS: 840 TARGET : 1250-1350 TIME FRAME: 12-18 MONTHS


Ajanta Pharma is a specialty pharmaceutical formulation company having branded generic business in India and emerging markets, generic business in US and institution business in Africa. The company offers products in various therapeutic segments, such as anti-biotic, anti-malarial,anti-diabetic, cardiology, gynecology, pediatric, respiratory, general and health products, dermatology,
ophthalmology, pain management, and others. The company provides its products in various dosage forms, including tablets, capsules, powders, ointments, eye drops, and cough syrups. Many of company's products are 1st to market and are leading in their
sub-therapeutic segments. Company’s state of the art R&D centres for formulation development and API are located at Mumbai, having a team of 850+ scientists. Company has 7 world class manufacturing facilities located in India and Mauritius. It has an equity base of just Rs.17.54crore that is supported by reserves of around Rs.2227.67crore.

The Promoters hold 70.52%, Mutual Funds hold 9.09%, FIIs hold 9.45% while the investing public holds 9.60% stake in the Company. During Q1FY20, APL posted PAT of Rs.114.63crore on higher sales of Rs.611.94crore fetching an EPS of Rs.13.14. During FY19, its PAT stood to Rs.386.97crore on sales of Rs.2055.37crore fetching an EPS of Rs.43.97. At CMP stock is trading at
PE ratio of 21x. It paid 800% dividend for FY19.

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