Key changes in Ajanta Share holding Qtr wise
| Jun-14 | Sep-14 | |||
| No. | % | No. | % | |
| Mutual Funds / UTI | 6 | 0.8 | 9 | 1.23 |
| Financial Institutions / Banks | 2 | 0.04 | 2 | 0.04 |
| Foreign Institutional Investors | 49 | 7.9 | 42 | 7.44 |
| Promoter and Promoter Group | 23 | 73.55 | 23 | 73.83 |
Ajanta results are out. Fantastic set of results. The year end target of 78 rs eps is already surpassed in 6 months(39 Rs vs. 25Rs. for 6 months). Generally, company does 60% of its business in second half.
Highlights of Q2 FY '15 vis-a-vis Q2 FY’14 standalone financial performance are:
. Revenue from operations grew 21% at Rs, 337 cr. against Rs. 280 cr.
. EBITDA growth of 32% at Rs. 111 cr. against Rs. 84 cr. EBITDA at 33% of revenue
. Profit before Tax at Rs. 113 cr. against Rs. 79 cr., a growth of 43%
. Profit after Tax grew 41% at Rs, 79 cr. against Rs. 56 cr’ PAT at 23% of revenue
. Exports contributed 64% of the revenue for the quarter
Super results.
Whats cooking in Ajanta ?
Is it just a rerating ?, valuations catch up ? or sth more fundamental , any idea?
Q2 was v good, last 2 month its up 50 %
My thoughts for Ajanta rally is
Today’s run-up is mostly due to Ajanta adding Salesforce in US(more anticipated sales from US) based on Moneycontrol comments. Also US FDA ban/hassles news for few pharma companies shifted focus to Ajanta.
Also, Ajanta featured in Business today magazine in firms showing more Profit growth than sales growth for past 5yrs and few brokerage reports gave target around 2150 for it recently
The stock did precious little after Q1 results.There were margin concerns for Q2,where the high base was supposed to kick in.However,the company has done well in Q2 also.The US market remains totally untapped & my sense is,they will continue to focus on high margin drugs there too.So,a relief on sustainability on margins & some catch up with smaller peers like Indoco,Alembic might have led to the rally.Also,the stock is quiet under owned,relative to peers.
Old timers in the pharma industry tell me that the first generation promoters of Ajanta had a lot of question marks about their integrity and corporate governance.
The new MD seems to have cleaned up the act, and also put the co firmly on the growth path. We can see the results reflected not only on the top line and bottom line, but also on management’s effectiveness parameters like ROCE, ROE and Cash Flows. I am sure the promoters now realise that Rs.1 added to the EPS adds nearly Rs.30 to their per share value.
If the co sticks to this path, it can be a multi-bagger even from these elevated levels.
Ajanta is no way “expensive” even today. We have already clocked Rs 39 EPS in H1FY15 and I believe comfortably we can do Rs 85 EPS (maybe more since over 60% of business is done in H2) for the full FY so trading at around 29 times FY15 estimated earnings. It is little difficult to find a Pharma company like Ajanta:
1). Their presence & growth in non-US markets inc. India and Africa should not be ignored. No pesky US FDA issues to lose sleep over with. US market entry will give add to the topline so upside potential is there.
2). Able management. Recently they bought more of Ajanta shares with the dividend money and own 74% in the company.
3). Another exciting thing is they are in pharma space. Think about the possibilities. We are a populous country, a lot of people will get old eventually and popping pills will be on the rise. Their market share in India is on the raise. The economics of pharma business with high ROCE provides tailwinds.
4). Depreciation/interest cost will come down from FY15 and Dahej/Savli plant to be operational from around FY16.
Till some back was trading at 17 times and now Mr Market has woken up?
For the month of novemberAjanta grew at 33.1 per cent and was among top three after pfizer andAkumentis
Is there any news because of that it is coming down? As I could not find any thing.
Ajanta went up too fast, almost 50% in last 3 months and hence now a bit of cooling period.
Also,Pharma stocks as a whole hammered down due to Rouble trouble in last week.
Also expected EPS of around Rs 90 this year with PE of 25-30 shud be somewhere between Rs 2250-2700 share price which is where current price is swinging
Ajanta went up too fast, almost 50% in last 3 months and hence now a bit of cooling period.
Also,Pharma stocks as a whole hammered down due to Rouble trouble in last week.
Also expected EPS of around Rs 90 this year with PE of 25-30 shud be somewhere between Rs 2250-2700 share price which is where current price is swinging
Hitesh/Donald
Here is shorterm headwind for ajanta pharma
Your views invited
Ajanta out with good numbers again.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/Ajanta_Pharma_Ltd_280115.pdf Revenue up 21% and PAT up 36%, EBITDA 36% of revenues. Domestic sales have grown faster at 35%. 6 new product launches out of which 2 were first to market Emerging market grew 15% but company has 1700 products under registration. Awaiting 23 ANDA approvals from USFDA Dahej facility for oral solids has been completed and undergoing qualification. Expect regulatory filing batches from Q1FY16
EPS for Q3 was 24.06 vs 17.72
9 month EPS 63.07 vs 42.82. This is higher than last full year EPS of 62.72. So even if they do EPS of 24 in Q4, full year EPS will be 87. At CMP of 2600, it is trading at PE of 30x 2015.
@Rohit - add another 5-6 Rs. for the consolidated earnings and we are looking at close to 95 Rs. EPS for the year. I would not be surprised if consolidated earnings are closer to the triple digit for the year.
Meanwhile, stock split is announced. FV will become 2 from 5.
Disc. - Invested
An interesting comparison between Sun/Lupin/Ajanta:
http://postimg.org/image/azshaozhz/
I feel Ajnata still has lots of scope for margin expansion.
Record date for stock split fixed on 23 March.
http://www.equitybulls.com/admin/news2006/news_det.asp?id=156311
hi ,
Can any one please tell me from where I can get the list of ANDA’s applied to US FDA by pharma companies. is thier any source from where I can get the list of the US ANDA applied by indian pharma companies. If some one has any idea please share
Thanks
Some more pledged shares released by promoters. Now pledged shares stand at 1.2% of total equity.
