Ajanta Pharma - Healthy Growth
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Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2880
Printed Date: 03/May/2025 at 6:18am
Topic: Ajanta Pharma - Healthy Growth
Posted By: Circuit
Subject: Ajanta Pharma - Healthy Growth
Date Posted: 17/Jul/2010 at 12:38pm
Highlights:On standalone basis, over the last 5 years (from FY 2005 to FY 2010) Ajanta Pharma has registered 17% Compounded Annual Growth Rate (CAGR) in it sales. Ajanta Pharma is a specialty pharmaceutical company engaged in the development, manufacture and commercialization of pharmaceutical products. It employs over 2,500 people worldwide and its products are sold in over 25 countries. The company develops and commercializes a diverse range of scientifically and medically innovative generic products. It is amongst the front runners in the segments of Cardiology, Dermatology Ophthalmology, and Anti-Malarial. Many of its brands hold leading positions in their respective sub-therapeutic segments. Ajanta Pharma is also expanding our presence in the fields of Respiratory, Gastrointestinal and Musculoskeletal medicine by introducing innovative products in these segments. A clear therapeutic focus has lead to a strong product portfolio for the company. Ajanta Pharma is a fully-integrated pharmaceutical company with headquarters in Mumbai, India. It has an advanced Research & Development Centre for API synthesis and finished formulations of different dosage forms. Its focus on specialty segments in India and simultaneous entry in to new international markets have been the key growth drivers for over the years. It is also engaged in contract research for leading multinational pharmaceutical companies to expand its revenue base. Modern manufacturing facilities: Ajanta Pharma operates 5 state-of-the-art manufacturing facilities; 4 within India and 1 in Mauritius. One of these, located at Paithan, India is approved by the US FDA, health authorities of Brazil and Colombia and also holds a WHO pre-qualification for one of its products. These modern manufacturing sites provide the company with a high level of flexibility, thus ensuring efficient and timely delivery of products to patients and clinicians worldwide. Its manufacturing capabilities include a comprehensive range of dosage formulations of allopathic drugs including tablets, capsules, ointments, injections and powders. To cater to the growing marketing needs, the company is in the process of expanding its manufacturing scope with more facilities and capacity enhancements in the existing plants. Enhancing global presence: The company started its overseas expansion in the late 90’s and now its products are sold in over 25 countries through an established presence across Africa, Asia, Latin America and The CIS. Ajanta Pharma is now in the process of formulating products to be able to file product dossiers in the regulated markets. Ajanta has established a strong marketing set-up that is supplemented by a wide distribution network in many international markets. All activities are centered on establishing its brands in respective markets for sustained sales. Strong R&D base: R&D is the first & foremost important component in the pharma value chain. Recognising this, Ajanta Pharma has been consistently investing in R&D. Its constant initiatives are in the direction of targeting, both identified market opportunities and challenge of unmet medical needs which enables it to work on difficult to make products, in existing as well as high potential new therapy areas. The company continues to focus on New Drug Delivery Systems (NDDS) and new combinations. With the help of its R&D capabilities, it now has 1380 product registrations in different markets of the world and over 1029 more are waiting in pipeline. Its R&D facility at ‘Advent’, Mumbai, which is approved by Department of Scientific and Industrial Research (DSIR), Ministry of Science & Technology, Government of India, is being expanded which will ensure consistent growth for the organisation in the coming years. Its R&D facility Advent has more than 150 diligent and committed scientists. Advent, located in Mumbai, houses a range of state-of -the-art equipment for formulation development, working on different dosage forms ranging from topical creams, ophthalmological preparations, nasal sprays and dry powder inhalers to name a few. It has an equally well equipped API lab at Advent to synthesize high value APIs for someof its key products. Few of its notable R&D achievements are in the segment of anti-malarial with flagship brand, ARTEFAN; the first generic product to have been pre-qualified by the World Health Organization (WHO), Geneva. Its other key brands include KAMAGRA (Sildenafil Citrate) & APCALIS-SX (Tadalafil), both used in the treatment of Male Erectile Dysfunction. These are available in the conventional tablet as well as in an innovative “jelly” form which is the world’s first of its kind dosage form for this molecule. Strong API player: Another key component of pharma value chain is manufacturing of critical raw material, commonly known as Active Pharma Ingredient (API). Whenever a new formulation needs to be launched, it has to start from its basic compound, which during initial period, is not easily available in the market place. It is here that, in-house capability for producing such API becomes essential to reach the formulation to the needy patients at the earliest. Further, it also helps to reduce costs by process improvement, thereby improving profitability. Realising its need and importance in the pharma value chain, Ajanta Pharma has recently set up a state-of-the-art API facility at Waluj, Aurangabad. This plant is equipped to produce different scale of volumes right from laboratory to pilot to commercial level. This enables the company to carry out innovations in both product quality and cost. With this addition, it has mapped the complete pharma value chain. Addition of this component of pharma value chain will accelerate the company’s growth in the coming years. Impressive standalone performance; sales up 19% and PAT rise 33% For the FY 2010 Ajanta Pharma registered a strong 19% rise in standalone sales to Rs 381.67 crore. As OPM remained unchanged at 18.7% OP also grew 19% to Rs 71.22 crore. Other income fell 7% to Rs 1.27 crore and interest cost fell 13% to Rs 19.08 crore. Even as depreciation shot 50% to Rs 19.76 crore, PBT grew 30% to Rs 33.66 crore. As taxation rose 12% to Rs 5.12 crore, net profit shot up 33% to Rs 28.54 crore. Consolidated yearly performance is higher and much better: In FY 2010 on a consolidated basis Ajanta Pharma registered a 17% rise in its sales to Rs 407.71 crore. As OPM improved by 30 basis points to 18.9% OP grew 19% to Rs 77.14 crore. Other income rose 1% to Rs 2.51 crore and interest cost fell 14% to Rs 20.16 crore. Even as depreciation jumped 46% to Rs 20.73 crore, PBT grew 30% to Rs 38.76 crore. As taxation rose just 9% to Rs 4.76 crore, net profit shot up 34% to Rs 34.00 crore. Consolidated EPS is higher than standalone EPS In FY 2010 the company registered consolidated EPS of Rs 28.8 against standalone EPS of Rs 24.2. Impressive CAGR On standalone basis, over the last 5 years (from FY 2005 to FY 2010) Ajanta Pharma has registered 17% Compounded Annual Growth Rate (CAGR) in it sales. Net profit during the same period grew at a CAGR of 31%. On consolidated basis, over the last 5 years (from FY 2005 to FY 2010) Ajanta Pharma has registered 15.1% CAGR in it sales. Net profit during the same period grew at a CAGR of 28%. Appealing valuation; while standalone P/E is 6.3, consolidated P/E is just 5.5: On standalone basis, in FY 2011 we expect the company to register sales of Rs 456 crore and net profit of Rs 38.59 crore. On an equity of Rs 11.86 crore (66.82% held by the promoters) and face value of Rs 10 per share, standalone EPS works out to Rs 32.7. In FY 2011 on consolidated basis, we expect the company to register sales of Rs 481.10 crore and net profit of Rs 43.82 crore. Thus consolidated EPS works out to Rs 37.2. Currently its consolidated book value stands at Rs 156, whish is likely to touch Rs 190 mark by end of FY 2011. The share price trades at Rs 220. While the P/E on standalone EPS (of Rs 32.7) works out to 6.7, it falls to just 5.9 on our consolidated projected EPS (of Rs 37.2) for FY 2011. ------------- Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking ‘better’ the more it goes against them....Ed Seykota |
Replies:
Posted By: hit2710
Date Posted: 17/Jul/2010 at 7:37pm
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I am tracking this scrip recently and looks good. At least in dermatology which is my speciality, they do come up with a lot of new products every few months and they seem to be quite successful in their launches.
Debt is relatively high at around 200 plus crores(sorry Vivek Sukhani), although for a company with a stellar record as ajanta, this should not be a concern. ROE is low at around 20 which again can go up with improved results. Promoter pledging has come down over the last four quarters. I feel this one is undergoing rerating currently looking at the run up it has had. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: niraj007.in
Date Posted: 19/Jul/2010 at 3:02pm
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Ajanta Pharma is a specialty pharmaceutical company engaged in the development, manufacture and commercialization of pharmaceutical products. It employs over 2,500 people worldwide and its products are sold in over 25 countries. Modern manufacturing facilities Ajanta Pharma operates 5 state-of-the-art manufacturing facilities; 4 within India and 1 in Mauritius. One of these, located at Paithan, India is approved by the US FDA, health authorities of Brazil and Colombia and also holds a WHO pre-qualification for one of its products. These modern manufacturing sites provide the company with a high level of flexibility, thus ensuring efficient and timely delivery of products to patients and clinicians worldwide. Strong R&D base R&D is the first & foremost important component in the pharma value chain. Recognising Souce: Capital Marketthis, Ajanta Pharma has been consistently investing in R&D. Its constant initiatives are in the direction of targeting, both identified market opportunities and challenge of unmet medical needs which enables it to work on difficult to make products, in existing as well as high potential new therapy areas.Few of its notable R&D achievements are in the segment of anti-malarial with flagship brand, ARTEFAN; the first generic product to have been pre-qualified by the World Health Organization (WHO), Geneva. Its other key brands include KAMAGRA (Sildenafil Citrate) & APCALIS-SX (Tadalafil), both used in the treatment of Male Erectile Dysfunction. Strong API player Another key component of pharma value chain is manufacturing of critical raw material, commonly known as Active Pharma Ingredient (API). Whenever a new formulation needs to be launched, it has to start from its basic compound, which during initial period, is not easily available in the market place. Consolidated yearly performance is higher and much better In FY 2010 on a consolidated basis Ajanta Pharma registered a 17% rise in its sales to Rs 407.71 crore. As OPM improved by 30 basis points to 18.9% OP grew 19% to Rs 77.14 crore. Other income rose 1% to Rs 2.51 crore and interest cost fell 14% to Rs 20.16 crore. Even as depreciation jumped 46% to Rs 20.73 crore, PBT grew 30% to Rs 38.76 crore. As taxation rose just 9% to Rs 4.76 crore, net profit shot up 34% to Rs 34.00 crore. Impressive CAGR On standalone basis, over the last 5 years (from FY 2005 to FY 2010) Ajanta Pharma has registered 17% Compounded Annual Growth Rate (CAGR) in it sales. Net profit during the same period grew at a CAGR of 31%. On consolidated basis, over the last 5 years (from FY 2005 to FY 2010) Ajanta Pharma has registered 15.1% CAGR in it sales. Net profit during the same period grew at a CAGR of 28%. Appealing valuation; while standalone P/E is 6.3, consolidated P/E is just 5.5 On standalone basis, in FY 2011 we expect the company to register sales of Rs 456 crore and net profit of Rs 38.59 crore. On an equity of Rs 11.86 crore (66.82% held by the promoters) and face value of Rs 10 per share, standalone EPS works out to Rs 32.7. In FY 2011 on consolidated basis, we expect the company to register sales of Rs 481.10 crore and net profit of Rs 43.82 crore. Thus consolidated EPS works out to Rs 37.2. Currently its consolidated book value stands at Rs 156, whish is likely to touch Rs 190 mark by end of FY 2011. The share price trades at Rs 220. While the P/E on standalone EPS (of Rs 32.7) works out to 6.7, it falls to just 5.9 on our consolidated projected EPS (of Rs 37.2) for FY 2011. ------------- “Capital can do nothing without brains to direct it.” –J. Ogden Armour |
Posted By: hit2710
Date Posted: 19/Jul/2010 at 3:42pm
Looks like the same details as in the first post.  ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shivkumar
Date Posted: 19/Jul/2010 at 4:34pm
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What percentage of the company's revenues come from exports? If it is higher than domestic revenues, there is a danger of profitability getting impacted by forex fluctuations. This would be compounded by high debt on the books. During a major correction phase, the stock could get really cheaper. |
Posted By: excel_monkey
Date Posted: 17/Nov/2010 at 5:05am
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Depends on which country you are talking about
emerging market forex moves in a tandem
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Posted By: excel_monkey
Date Posted: 03/Dec/2010 at 9:30am
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I have been studying this company since hit ji brought it to our notice
I am impressed Kamagra is one of the largest selling Viagra copy online in Europe only two things which bother me are 1. if they would be able to sustain and improve on their margins? 2. if the promoters are reliable? |
Posted By: excel_monkey
Date Posted: 04/Dec/2010 at 11:12pm
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a desi research report on Ajanta
http://www.myiris.com/shares/research/SSFL/AJAPHARM_20101130.pdf |
Posted By: shadows
Date Posted: 04/Dec/2010 at 6:47am
| Hiteshjee which one is better between Ajanta and Twilight pharma. I hold both companies and i have more exposure to twilight pharma |
Posted By: hit2710
Date Posted: 05/Dec/2010 at 7:46pm
I like ajanta pharma and own it. Not too much idea about twilight; ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kushal.masand
Date Posted: 05/Dec/2010 at 2:30am
| @ shadows: can u give some details abt twilight... |
Posted By: shadows
Date Posted: 05/Dec/2010 at 6:08am
I dont know much about pharma companies except they are defensive bets.  . i just rely on reliable sources and fundamentals to buy this sector stocks.
i just tryed to compare two pharma stocks. Twilight Pharma Ajanta Pharma Listed in : NSE and BSE NSE and BSE CMP 142 214 52 Wk H/L 204/50 273/96 MCap 330 Crores 253 Crores FV 5 10 Div 30% 35% H1FY11eps 12.58 14.4 H1FY10eps 7.1 9.1 Promoter holding 63.4% 66.8% on half year basis thy are trading at 11.2 and 14.8 respectively. Ajanta pharma has better second half yearly results while twilights is flat. |
Posted By: hit2710
Date Posted: 05/Dec/2010 at 9:23am
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It would be more pertinent to check on the last 5-6 years results for both companies. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 05/Dec/2010 at 10:16am
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history says Twilight is a clear winner over Ajanta on anything including debt equity ratio also
here are my findings. twilight ajanta 2006-10: sales 98/491 [cr] 212/380 [cr] NP 4/32 10/28 D/e 2.1 1.16 jan 06 to dec 10 price movement. 24/141 80/213. twilight gave areturn of 5.8 times compared to ajantas 2.6 times. if the records are true* then twilight may outrun in the future too 
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Posted By: bitu1978
Date Posted: 06/Dec/2010 at 11:44pm
He he he Even the Name Twilight also is a winner in Hollywood Movie Franchise 
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Posted By: excel_monkey
Date Posted: 06/Dec/2010 at 11:52pm
| Twilight I think is a contract manufacturer where as Ajanta markets under its own brands |
Posted By: hit2710
Date Posted: 06/Dec/2010 at 9:14am
Youve hit the nail on the head. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: excel_monkey
Date Posted: 07/Dec/2010 at 2:06pm
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Hitesh ji
why is the tax rate so low for Ajanta? |
Posted By: hit2710
Date Posted: 07/Dec/2010 at 2:50pm
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Over the years, the company has created strong brands in various geographical markets
In interaction with Mr. Arvind Agarwal, CFO of the company after the company's AGM in Mumbai on 9th July 2010 Key highlights • Strong brands in key markets are the success for Ajanta Pharma. The company has a unique business model which it successfully operates in 52 countries in which it is present. • Nearly 60% of total sales of the company come from international markets. In international markets, the company sells its products through its own team of sales representatives.. It has a dedicated chain of salesmen which ensures its brands reach the dealers. Nearly 90% of its exports of around US $ 47 M are through direct marketing men. The rest are sold through distributors and dealers network. • The company does not sale all its products in all the geographies in which it operates. Rather it follows a very country specific and product specific model. For example, it sells its Anti malarial products and specialty range of products in African markets which continue to do wonder, while in South East Asian markets, cardiology, ophthalmology and dermatology products are sold. Similarly for Latin American market, the company has cuff syrup dosages. Thus rather than dumping all the products to marketing team, products or rather, the brands are sold depending upon the demand for that particular market. • Over the years, the company has created a strong brand of its product in various geographical markets. Within geographical markets, Asia constitutes about 50% of its international sales, 30% would be from Africa and the rest would be from Latin American region. There are no sales to EU and US at present, but in the next 3 years the company has plans to venture into US. • The entire export sales are made under $ currency. The company continues to import some of its API requirements from China as it can never match the costs at which they are selling vis a vis manufacturing the same in India. Also the company has its working capital loans ie the PLC in forex currency so to that extent both act as natural hedge. For the rest of the export sale, the company completely hedges on the very day of booking of sale. • In domestic market, all its sale come from prescription based model and largely from three segments ie, dermatology, cardiology and ophthalmology. All its sales are from prescriptions from Specialist doctors. The company's brands are the strongest among these specialist doctors. For example for dermatology, Melacare is recommended by most specialist doctors. The company has geographical presence across India; though they are weak a bit in Eastern region. • During past 3 years, the company had incurred a capex of about Rs. 100 crore. Nearly 20 crore is spent on upgrading the Paithan facility and the rest is spent on setting up new API facility in Aurangabad and on new R&D centire in Kandivali (W), Mumbai and on warehouse infrastructure. Presently the entire API manufacturing is for its Formulation business and currently is operating at 30% of installed capacity. The company will consider to sell some API even outside. For other API requirements, the company imports the same from China as it is much cheaper option than manufacturing. • The company will spend every year about Rs. 20 crore, largely on new products, expansion and up gradation in existing products and on R&D's. • Nearly Rs. 45 crore is standing as WIP as on Mar'10. Of these nearly Rs. 30 crore is for expanding its API facility, new product range for its Paithan facility in Aurangabad and for upgrading its R&D centers. The rest is for two new products for which ANDA has been filed which are largely on machineries. • The company has filed two ANDA's last year and it will take normally about 24 months, for the ANDA's to get approved. This will be the next future growth driver for the company. • Company does not keep any forex positions open and does not speculate in currency. • There is some seasonality of business depending upon the product sale in particular region. Generally, the sales of Q4 is maximum and Q1 will always be lower, with Q2 and Q3 in the middle region. • The Mauritius Formulation facility is largely for Western part of African markets, where there exists some treaty with the Mauritius country, that the imports are allowed duty free and without any restrictions. The US subsidiary is largely for filing ANDA and other procedural purposes. The Philippine subsidiary acts as a marketing arm for that particular region. • The company's locations continue to operate under MAT, plus the R&D tax deductions are also there. Overall the tax rate will be around 15%. • There are no plans to raise money. The company had in past declared a buy back plan but with the share price rising, the plan stands cancelled. • Some of the list of products (brands) includes Valif, Met XL 100 for cardiovascular, Artefan for Anti malarial segment, Melacare, Nasopat, Fivasa, Salisa for Dermatology segment, Unibom, Apdrops for Ophthalmology. The company also has product called Kamagra for males, which has found strong presence in Gulf and African markets. • The company has introduced 28 new products last year and around 20 is planned for FY'11. However new products will take time, before they become a major ones for the company. • Nearly 50% of its sales are manufactured by the company and the rest are outsourced from various unorganized players. This model ensures better control over logistic and other costs results in overall better margins. • There are no plans to do any CRAMS business at this point of time. • The Inspira infrastrucre has plans to set up an Infrastructure Pharma SEZ in Aurangabad. There are no business connection with this company and Ajanta Pharma, except that the promoters are the same. • The margin has been continuously improving from around 15% in FY'07 to around 19% in FY'10. The brand value, economies of scale continues to play a key role in the improvement in margins. The company continues to expect healthy margins going forward. • Overall the company expects the net sales to grow by 15-20% every year. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: excel_monkey
Date Posted: 07/Dec/2010 at 6:29pm
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Thanks for a detailed analysis
one important thing which I hear in my conversations with other analysts and which you have also pointed out is the China factor what would happen to the likes of Vinati Organics are these companies just enjoying a few quarters of margin improvement before being run over by Chinese or should one invest only in Indian formulation companies?
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Posted By: hit2710
Date Posted: 07/Dec/2010 at 6:43pm
Regarding the china factor, for ajanta it works in its favour since it can source its API from China as it works out much cheaper even though it itself can also manufacture APIs. But such flexibility according to me is a good thing to have for a company. Another good thing about Ajanta Pharma is that it has a very good brand recall in its products in some specialities like dermatology, antimalarials, and diabetes management. Here there indeed is pricing power. Just to give an example, the brand melacare is probably the top in its segment among similar products from all companies in India. It is used as a skin lightening agent for hyperpigmentation. Now there is a similar product from a company called Intas which is almost 60-65% its price and still Melacare continues to command top prescription slot in the product category. This is because of first mover advantage as well as recurrent brand re-inforcement due to good marketing and sales representatives. Coming to Vinati and china impact, I dont think Vinati will be impacted too much by Chinese threat because the technology is a closely guarded one and there are around 2-4 players worldwide in the products which Vinati is involved in. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: excel_monkey
Date Posted: 07/Dec/2010 at 7:10pm
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Hitesh ji
your views on Venus remedies and Ind-Swift sisters would also be valuable I am already convinced about Ajanta the only thing which worries me about Ajanta is that there is not a single institution invested in the company
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Posted By: hit2710
Date Posted: 07/Dec/2010 at 7:19pm
Regarding venus, ever since the fccb default thing I dont want to look at this company because it shows the management in poor light although they may have rectified their mistakes. Indswift I have no idea about either of them. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: excel_monkey
Date Posted: 07/Dec/2010 at 7:27pm
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yes, they have settled the issue with the bond holders
it is just that I have seen the stocks like Unichem languishing at low levels before zooming Earlier the market was not at all interested in formulation companies with domestic focus but were going gaga over API exporters and now it is the turn on domestic formulations I am just trying to find if there is another Unichem hidden somewhere the good thing about Ajanta is the traction in the stock except that there is not a single institution invested in the stock
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Posted By: excel_monkey
Date Posted: 09/Dec/2010 at 7:44pm
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strong support at 180 - 185 levels
the fundamentals are strong would not breach these levels |
Posted By: chints
Date Posted: 12/Dec/2010 at 2:08pm
| what happening to twilight these days..any news? |
Posted By: commnman
Date Posted: 20/Jan/2011 at 7:18pm
A "Kamaggravated" performance 
Q3 numbers out... Total Income up 27.3% to 120.51 Cr from 94.66 Cr. EBIDTA up 31% to 22.79 Cr from 17.4 Cr. Net Profit up 55.3% to 11.95 Cr from 7.69 Cr. EBIDTA margin is 18.92% V/s 18.38% (Q309) and 18.59% (Q2) Net profit margin is 9.92% V/s 8.13% (Q309) and 8.93%(Q2) Raw material costs gone up to 45.17% of sales V/s 40% (Q309) and 36.6% (Q2) R&D expenses gone up to 7.66 Cr from 4.84 Cr (Q2) Then how did bottomline go up so much? 1. Other expenses to sales down to 17.32% from 27.9% 2. Significant reduction in Interest costs to 3.46 Cr V/s 4.29 Cr. Y-t-D 9-month 2010 to 9-month 2009: Total Income up 21% to 331.3 Cr from 273.78 Cr (FY10 Full year 381.67 Cr) EBIDTA up 22.4% to 61.57 Cr from 50.3 Cr (FY10 Full year 71.23 Cr) Net up 56.7% to 28.98 Cr from 18.5 Cr (FY10 Full year 28.54 Cr) Reported Nine month EPS is 24.75 V/s 15.8 (FY10 Full year 27.37) ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: sbkv
Date Posted: 25/Jan/2011 at 11:15am
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Any idea why stock continues to languish in the 180-210 range even after stellar results? Hitesh ji can u plz through some light on Management/Board members? Any Corporate Governance issues? |
Posted By: prabhakarkudva
Date Posted: 26/Jan/2011 at 12:50pm
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Markets are very picky right now about what gets its due.If we were in 2007-08 (a raging bull market) a upmove of 5-10% would've been a foregone conclusion.But now markets are looking for businesses that have earnings visibility till FY12 and even those are being rated cautiously.So as an investor you need to ride this phase out and if earnings growth does hold up then generally these stocks move 30-40% within a week.Have conviction,then hold on. ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: shadows
Date Posted: 26/Jan/2011 at 11:28am
sudden sprut in ajanta pharma, i booked my profits  thanks to hiteshjee
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Posted By: hit2710
Date Posted: 27/Jan/2011 at 1:19pm
Why now?? Manzilein abhi aur bhi hai. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 27/Jan/2011 at 1:44pm
Hiteshbhai, decision taken by considering the overall situation of the market and hoping it will comes again to test the 200DMA 
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Posted By: prudentinvestor
Date Posted: 30/Jan/2011 at 1:25am
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Why aren't any mutual funds invested in this, even the pharma funds ?
------------- "All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out..” - Peter Lynch |
Posted By: Rehan
Date Posted: 06/Feb/2011 at 2:29pm
| I went through the AR and the entire thread here to find out the major export market for this company. I wanted to know how much % of export is to USA?? |
Posted By: hit2710
Date Posted: 06/Feb/2011 at 2:36pm
Not much. They are now trying to get USFDA nod for some of their products and if they get it that could be the next avenue of growth. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 08/Feb/2011 at 9:48am
bought at 190 levels again 
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Posted By: Rehan
Date Posted: 08/Feb/2011 at 11:21am
| Though it has a CAGR of more than 30 % in the last 5 years its ROE is at around 15 % . Why is it?? Is it that its ROE in earlier years were very less and has a big reserves????? |
Posted By: hit2710
Date Posted: 09/Feb/2011 at 6:38pm
Consolidated eps of ajanta for fy 10 was 29 per share. Book value per share for fy 10 was at 149 per share. so effectively the ROE comes to about 20%. Standalone eps was around 24 per share and hence the roe would be around 16. If u calculate the roe from fy 05 till fy 10 it is 7.32, 9.24, 11.08, 12.9, 13.72, 16-- there is a steady upward movement of ROE. I guess it has to do with the company achieving better NPM due to economies of scale and maturation of business and the capital invested in expansion now generating returns. Even npm which from fy 05 to fy 10 has been 4.13, 4.85, 5.68, 6.11, 6.64, 7.42 and for 9m fy 11 is 8.76. Thats a steady consistent improvement. And now the debt also seems to be gradually coming down. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Rehan
Date Posted: 09/Feb/2011 at 7:28pm
Thanks Hitji
I am impressed by its performance and have bought this one. I am thinking of adding more. I think it has very limited downside but good upside. All indicators seem good. ROE , NPM , Revenue are trending up and debt going down. This years performance has been more than 50% growth in bottom line till now. If this continues, I think it is due for huge rerating. I feel this stock is better than most of the pharma stocks discussed here.
Do you have any targets in mind for 1 to 3 years. Do you see any other pharma stock more attractive than this one. One more thing I like is its non dependence on USA mkt which I think is crowded. I think the growth will happen more in Non USA -Euro mkts.
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Posted By: hit2710
Date Posted: 09/Feb/2011 at 7:38pm
This is a very risky statement these days. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: om2112
Date Posted: 01/Mar/2011 at 10:43am
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As the tax rate is very low aprox 15 per,proposed MAT of 18.5 per on Pharma companies operate in SEZ will be impacted. http://www.thehindubusinessline.com/todays-paper/tp-economy/article1501840.ece - http://www.thehindubusinessline.com/todays-paper/tp-economy/article1501840.ece Any one has the idea how AJANTA will get impacted. |
Posted By: baba
Date Posted: 18/Mar/2011 at 12:45pm
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ajanta pharma .. growing regiularly .. ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: Rehan
Date Posted: 18/Mar/2011 at 11:11am
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Will the MAT be applied even on the existing SEZ which had tax holidays???
Will be big negative for them in that case
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Posted By: barla
Date Posted: 19/Mar/2011 at 7:27pm
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Very interesting. SEZ zone is tax free. MAT is on company. some tax expert may be able to guide us. If the SEZ gives a heavy packet a notification will come later clarifying that MAT is not applicable to SEZ
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Posted By: KACHAM
Date Posted: 27/Mar/2011 at 5:18pm
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Hi, Thanks Hit and others for valuable insights into this company..
I was checking the PE of large pharma comps and found them to be 20+. Smaller ones like Ajanta are having PE less than 10..any specific reason for this trend and also can we expect PE re rating for this company ..
What is the general trigger for a PE re rating in Pharma sector?
Thanks ------------- Jai Telangana, Jai Jai Telangana |
Posted By: baba
Date Posted: 11/Apr/2011 at 2:28pm
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wat a pop up !! ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: baba
Date Posted: 11/Apr/2011 at 2:29pm
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up 30 bucks !! ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: shadows
Date Posted: 30/Apr/2011 at 6:05am
dividend pay up 42.8% 
seems ready for Monday party |
Posted By: commnman
Date Posted: 01/May/2011 at 6:16pm
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A look at Q4 and Full Year numbers...
Total Income up 16.4% to 125.85 Cr from 108.12 Cr. EBIDTA up 32.3% to 27.98 Cr from 21.15 Cr. Net Profit up 74% to 17.47 Cr from 10.04 Cr. EBIDTA margin is 22.23% V/s 19.56% (MQ-10) and 18.92% (DQ-10) NET Pr margin is 13.88% V/s 9.29% (MQ-10) and 9.92% (DQ-10) Cost of goods sold as a %ge to Income is 36.05% V/s 47.2% (MQ-10) and 45.17% (DQ-10) Employee costs to Income up 13.62% from 10.68% R&D expenses stable Other expenses too are up to 22.49% from 17.71% Net profit helped by 1. Interest charges thats down 9% in absolute terms and down to 16.31% of Operating Profit v/s 25.64%. 2. Tax Rate thats down to 4.78% from 13%. Full Year 2011 v/s 2010: Total Income up 19.7% to 457.15 Cr from 381.9 Cr. EBIDTA up 25.3% to 89.55 Cr from 71.45 Cr. Net up 62.7% to 46.45 Cr from 28.54 Cr. Here too Net profit helped by reduction in raw material costs & Interest expenses. Tax Rate for full year down to 10.25% v/s 15.22% Reported Full Year EPS is 39.67 V/s 24.37 Key takeaways from A&L statements. 1. Debt down from 203.29 Cr in March 2010 to 178.81 Cr in Sept 2010 to 158.28 Cr as on March 31, 2011. 2. CASH UP from 5.23 Cr in March 2010 to 3.17 Cr in Sept 2010 to 12.54 Cr as on March 31, 2011. NOTE: The Consolidated A&L reveals total Debt of 190.63 Cr and CASH of 14.76 Cr as on March 31, 2011. What is relevent here Standalone balance sheet or Consolidated? ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: hit2710
Date Posted: 01/May/2011 at 10:27am
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Cons figures for last three years for ajanta pharma.
------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 02/May/2011 at 12:07pm
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A look at the last few quarters and last few years of Ajanta Pharma. It seems like a model of consistent growth.
LAST FEW QTR SALES AND NP—STANDALONE
LAST FEW YEARS SALES AND NP
------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: camanoj
Date Posted: 02/May/2011 at 12:28pm
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any seasonality in ajanta's business? ------------- Manoj |
Posted By: hit2710
Date Posted: 02/May/2011 at 1:08pm
Yes second half is usually better than first half. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 02/May/2011 at 7:26pm
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Ajanta Pharma is in talks with Dabur to sell one of its brands 30 plus to dabur.
http://www.bseindia.com/stockinfo/anndet.aspx?newsid=ec15abe0-3e3b-4607-966f-fd7577805bcf¶m1=1 - link ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 02/May/2011 at 8:21am
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Dr.hitesh bhai , wont this deal impact the ajantas top and bottom line in current fiscal. what would you think if the rumor comes true which company will benifit from this.
I exited ajanta counter with good profit at 255. |
Posted By: hit2710
Date Posted: 02/May/2011 at 10:29am
I dont know how much 30 plus is contributing to the top line or tbe bottom line. But according to my guess it is not a top priority brand. In my view it is such a brand which fits in perfectly with fmcg companies like dabur.(similar to the revital or supractiv kind of brands) Since dabur has the advertising muscle power to promote the brand it would be interested in acquiring the brand. About valuations it is everyone's own perspective, but for me a company growing consistently at around 20-25% over last few years quoting at around 6 PE is very attractive even at these levels. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 03/May/2011 at 2:43pm
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the deal has gone through and ajanta recovering from intraday low of 245.
this brand was launched in 1990, a key brand of ajanta was sold. i dont understand why it sold it's key brand. i think the formulation companies of health care sector can get 7-8 pe only. |
Posted By: hit2710
Date Posted: 03/May/2011 at 4:01pm
They have not announced the financial details of the deal. http://www.bseindia.com/xml-data/corpfiling/AttachHis/Ajanta_Pharma_Ltd_030511.pdf - link ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kapil1301
Date Posted: 04/May/2011 at 12:34pm
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Dabur acquires the 30-Plus brand of Ajanta Pharma.
Regards,
Kapil ------------- Thanks kapil |
Posted By: Rehan
Date Posted: 10/May/2011 at 9:12pm
| As per the news , the brand 30 plus did not have any contribution to the top line. Doest it mean , what ever money is a wind fall?????? |
Posted By: hit2710
Date Posted: 10/May/2011 at 10:35pm
Any links to this news? ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Rehan
Date Posted: 10/May/2011 at 12:02pm
link is http://www.moneycontrol.com/news/recommendations/buy-ajanta-pharma-targetrs-318-nirmal-bang_540833.html - here
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Posted By: atulbull
Date Posted: 15/May/2011 at 11:42am
------------- Price is what you pay.Value is what you get. |
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New HighPosted By: Rehan
Date Posted: 06/Jun/2011 at 1:08pm
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Going thru http://www.moneycontrol.com/news/recommendations/buy-ajanta-pharma-targetrs-318-nirmal-bang_540833.html - here
I am amazed by the cash it is expected to generate in 2012 to have a cash per share of around 128 rs. This years cash flow should be very strong as capex needs are going to be limited. Interests are going to be less than early years. Revenues should be on an uptrend . But if capex is cut down , this will have long term negative impact on growth but I would view it positively as cash generation will be very strong and fund deployment can be thought off later when balance sheet looks better.
I am getting even more bullish on this one. I have gone through the AR of 2011 and it made interesting reading though they have not made many forward looking statements. They have not talked about 30 + but it should get reflected in cash flow and B/S next year.
I am adding more to my present position on this one.
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Posted By: hit2710
Date Posted: 09/Jun/2011 at 1:34pm
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Ajanta latest recommendation.
http://groups.google.com/group/longterminvestorsresearch/browse_thread/thread/7a9db3b7ca43f396 - link ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Rehan
Date Posted: 09/Jun/2011 at 2:20pm
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Posted By: hit2710
Date Posted: 09/Jun/2011 at 2:27pm
I tried to open the link and it opens. Its a report by by some firm called indianivesh. else u can type ajanta and indianivesh and search google. regards hitesh. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shadows
Date Posted: 09/Jun/2011 at 2:46pm
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i am not able to open the link andalso the google search.
hit bhai, what the report said? any projections for Fy12/13 EPS or any kind of target given. |
Posted By: hit2710
Date Posted: 09/Jun/2011 at 4:02pm
Open google and put in the search for the above keywords mentioned. No reason why you couldn't find the report when I can.
Basically it is a buy reco with targets of around 450 plus within 12-15 months with a lot of details given. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Khan
Date Posted: 09/Jun/2011 at 4:54pm
You need to have a gmail id as you have to sign in to google groups. ------------- If you do what you've always done, you'll get what you've always gotten |
Posted By: hit2710
Date Posted: 09/Jun/2011 at 6:06pm
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Try this http://www.indianivesh.in/Admin/Upload/634431624043551250_Ajanta%20Pharma_Initiating%20Coverage_June2011.pdf - link
or go to this http://www.indianivesh.in - link There is a report dated 8th june. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Rehan
Date Posted: 09/Jun/2011 at 6:59pm
http://www.moneycontrol.com/news/recommendations/buy-ajanta-pharma-targetrs-318-nirmal-bang_540833.html - here Nirmal Bangs report
There seems to be a lot of difference between the 2 reports. One is talking of high capex in 2011-2014 and the other is talking of minimal capex. This has brought a lot of difference in the cash flow projections though EPS for both are similar. But the common theme is that there is expected to be good top line and bottom line growth as has been the case for the last 4-5 years.
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Posted By: hit2710
Date Posted: 09/Jun/2011 at 8:01pm
There's analysts for you. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kailasp4u
Date Posted: 12/Jun/2011 at 11:57pm
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Your reco is good enough Hitbhai! No need to look into CNBC/ETNOW/UTV or any other known/unknown brokerage/research firms! At the most, we can see their projections and financials, nothing more than that! ------------- knp |
Posted By: hit2710
Date Posted: 16/Jun/2011 at 10:51am
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Ajanta pharma gets US approval for Levetiracetam tablets
http://www.indiainfoline.com/Markets/News/Ajanta-Pharma-received-final-approval-for-the-Levetiracetam-tablets/3775352427 - link ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kushal.masand
Date Posted: 20/Jun/2011 at 2:32pm
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hitji, ajanta is 7% down.... is it good opportunity to enter...???? are technicals okays...??? ------------- Lets roll up our sleeves, and get to the work... |
Posted By: hit2710
Date Posted: 20/Jun/2011 at 3:31pm
Due to extreme weakness in the general markets, I think one has to keep a view to accumulate on declines in a stock like Ajanta. Strong support is likely to be around 260-270 band. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kushal.masand
Date Posted: 20/Jun/2011 at 3:41pm
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thanks for the quick reply...
------------- Lets roll up our sleeves, and get to the work... |
Posted By: hit2710
Date Posted: 22/Jun/2011 at 7:20pm
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Key highlights of management meet (excerpts from enam report) Domestic business – On a steady growth track In the Indian market Ajanta ranks 63rd with sales growing at 27% CAGR over FY06-11 on back of strong foothold in Opthalmology (FY06-11 sales CAGR - 35%), Dermatology (FY06-11 sales CAGR - 57%) and Cardiology (FY06-11 sales CAGR - 34%). ¡ In the Opthal segment, the company has 30 brands with 9 of them in the top 5 rankings. In the Derma segment, the company has 24 brands and 5 brands stand in top 4 rankings. In the Cardio segment, the company 8 brands and 3 are in top 10 rankings. ¡ 70-75% of the domestic sales are through prescriptions and the rest are tender based sales . The company has reduced its exposure to tender based sales (5% in FY11 vis-à-vis 23% in FY07) as a result of which EBITDA margins have expanded by 386bps to 19.1% in over the same period. ¡ With a total field force of over 2400 MRs, the management has guided for 16-18% CAGR growth from this geography over FY11-13E, driven by 10-12 new product launches, line extensions and therapy expansions. Exports – Focus on Asia/ Africa and capacity expansion will drive growth in the long term ¡ During FY11, exports business contributed 63% of the total sales with Asia/ Africa collectively contributing 95% to the export revenues and remaining from the LatAM. ¡ In African markets, the company derives 50:50 revenues from Anglo African and French African markets. Going ahead, we expect margins in exports segment to expand as the company has deliberately reduced its focus on tender business in Afirca (16% contribution to exports in FY11) and has not bidden for any of the WHO tenders. ¡ The company has planned a capex of Rs350mn in FY11 & Rs1-1.25bn over FY13-14E in order to gear-up for its entry into the regulated market of US. Majority of the capex will be towards setting-up of manufacturing unit. The company anticipates 10-12 ANDA filings going ahead, which is evident from increased R&D spend of 4.5%. The company has already filed 2 ANDAs, the approval for which is expected within a year’s time. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: baba
Date Posted: 03/Jul/2011 at 6:59pm
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thanks a lot hitesh :) ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: hit2710
Date Posted: 28/Jul/2011 at 1:28pm
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The ajanta juggernaut rolls on and how.
Qtr Q1 fy 11 Q1 fy 12 sales 98 127 int 4.3 2.8 NP 7 12.53 Usually first two quarters are the weaker ones. But the coming has made a wonderful start to the year. Sales up, net profits up, interest down. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: commnman
Date Posted: 28/Jul/2011 at 1:31pm
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Q1/Fy-12 results out...
Total Income up 29.5% to 127.31 Cr from 98.29 Cr. EBIDTA up 19.2% to 21.28 Cr from 17.86 Cr. Net Profit up 79.6% to 12.53 Cr from 6.98 Cr. EBIDTA margin is 16.7% V/s 18.2% (JQ-10) and 22.2% (MQ-11) NET Pr margin is 9.8% V/s 7.1% (JQ-10) and 13.9% (MQ-11) Raw material costs as a %ge to Income is 32.8% V/s 32.2% (JQ-10) and 36% (MQ-11) Employee costs to sales ratio is 14.2% V/s 13.6% (JQ-10) and 13.6% (MQ-11) R&D expenses to sales ratio is 7.8% V/s 5.4% (JQ-10) and 5.6% (MQ-11) Other expenses to sales ratio is 28.5% V/s 30.6% (JQ-10) and 22.5% (MQ-11) Interest expense to EBIT is 19.5% V/s 34.2% (JQ-10) and 16.3% (MQ-11) Tax Rate is 7.6% V/s 18.8% (JQ-10) and 4.8% (MQ-11) - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: Rehan
Date Posted: 28/Jul/2011 at 1:34pm
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Excellent results.
What about consolidated results?????
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Posted By: Jaishrikrishna
Date Posted: 28/Jul/2011 at 1:36pm
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Hitesh Bhai kindly edit the Qtrs 11 to 12 and vice versa . ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: shashikapoorin
Date Posted: 28/Jul/2011 at 1:38pm
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excellent results
------------- We dont hv 2 be smarter then others v need 2 be more disciplined then others |
Posted By: Ravenrage
Date Posted: 28/Jul/2011 at 1:44pm
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Excellent ?
YOY it appears so , but I think revenues have not grown much Q-o-Q . Profit is also on similar lines . I think upside is limited . |
Posted By: Rehan
Date Posted: 28/Jul/2011 at 1:54pm
What matters is YOY and not QOQ as the business nature is seasonal. It has been like that for the past.
Any update on the consolidated results though it is not significant as subsidiaries hardly contribute to around 10-15 % of business
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Posted By: hit2710
Date Posted: 28/Jul/2011 at 2:07pm
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JUST TO ADDRESS THE QUERY ABOUT SEASONALITY, LAST FEW QTR SALES AND NP—STANDALONE WHICH SHOWS THAT LAST TWO QUARTERS ARE USUALLY THE BEST QUARTERS. AND INTEREST COST COMING DOWN IS A BIG PLUS FOR AJANTA.
------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Rehan
Date Posted: 28/Jul/2011 at 2:17pm
This is the first time in 3 years that June Qtr revenue is more that March Qtr revenue. Great signs.
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Posted By: hit2710
Date Posted: 28/Jul/2011 at 2:22pm
I think as mentioned before you need to look at the y-on-y numbers. Sales growth has been around 27-28% and accompanied with net profit growth of higher magnitude. (part of it is to do with tax and interest costs coming down) But these days with a lot of companies reporting virtual howlers -- bajaj electricals is an example-- any company reporting decent numbers will be viewed by the markets positively. And to top it all this is a consistent 15-25% grower available at very attractive valuations. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Ravenrage
Date Posted: 28/Jul/2011 at 2:35pm
| Sorry , I had held it just long enough to move from 185 to 300 odd . I would take my comments back then . |
Posted By: hit2710
Date Posted: 28/Jul/2011 at 3:10pm
No need to be sorry. You are entitled to hold your views. What I feel is because of lower market cap this one is still not getting rerating due to it and hence investors in this company will need to be patient. Since there has been a sharp pre result run up I expect the stock price to consolidate for some time. If u look at fundamentals even if company declares 20% growth in profits for fy 12, it still does eps of 50 and hence available at 7 times PE. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: footy
Date Posted: 28/Jul/2011 at 4:21pm
| Hitji, what do you think is a fair p/e for Ajanta? |
Posted By: Rehan
Date Posted: 28/Jul/2011 at 4:50pm
Footy
What do you think should be the PE for this . A company with profit CAGR of 40 + for the last 10 years . Is there another company with this growth rate in the pharma space .?
I would easily give it a 15 PE for the following
1. it is a 500 cr turnover company
2. Tremendous growth
3. Well spread geography in terms of its market.
4. A pharma company - no recession
5. Potential newer markets like USA
I would like to know what Hitji has got to say.
I am invested in this one.
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Posted By: Jaishrikrishna
Date Posted: 28/Jul/2011 at 5:11pm
Ajanta's PE high / low for previous years:
 ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: commnman
Date Posted: 28/Jul/2011 at 6:18pm
Iss company mein hit bhai ka haat hai - baat khatam  ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: hit2710
Date Posted: 28/Jul/2011 at 6:55pm
Its difficult to take a call on the PE assigned to a stock. But looking at the consistency in earnings shown I think in very optimistic scenario, one can hope for a PE of something like 15 and to be very optimistic something like 20. But this could be a longer wait. If and when that happens it becomes a two bagger from current levels only by PE rerating while growth could continue consistently. Coming to some more smaller points of recent results 1. Employee cost has gone up from 13 to 18 crores. good sign. 2. Research cost has gone up from 5.3 to 9.9 crores. good sign. Operating profit has grown from 12.73 to 14.63 crores. Net profits has been helped by slight increase in other income, lesser tax provision (probably due tax break due to higher R&D spend) and lesser interest. What is most heartening to see is that company is maintaining higher margins while increasing sales. And earlier I was a bit concerned about slightly higher interest cost but that too seems to be coming down gradually. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: shashikapoorin
Date Posted: 28/Jul/2011 at 11:04pm
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Hit ji the company got approval for their first product IN USA .
------------- We dont hv 2 be smarter then others v need 2 be more disciplined then others |
Posted By: rdyn
Date Posted: 01/Aug/2011 at 3:46pm
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Financial Results for Jun 30, 2011
Ajanta Pharma Ltd has informed BSE about the Financial Results for the Period ended June 30, 2011. Financial%20Results%20for%20Period%20Ending%20June%2030,2011. - http://www.bseindia.com/stockinfo/anndet.aspx?newsid=64bdae42-d2c9-40da-ac8d-dc77ab228d39 ------------- My aim is to read each and every post on TED! |
Posted By: manish_okhade
Date Posted: 01/Aug/2011 at 4:57pm
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Company is cool and has shown consistancy from FY02, i am still surprised why it is yet not rerated. Only reason i am able to think of is that it is difficult to derive the confidence for future due to lack of brand name.
Rerating is a more a function of confidence of majority which seems to be missing. Past is fabulous but no way to ascertain the future hence low PE. If somebody can throw some light then we can be serious.
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