Revenue and PBT growth seems to have slowed down. PAT looks good due to lower tax this quarter.
Does anyone know the reasons for lower tax? New plants will be commercialized in 2017 only.
Has the US revenues gone up coz they had few products launch last quarter
US revenues is too small to bother. Just 5crs in 4Q and 14crs in FY16.
Receivables have gone up somewhat from 63 days in FY15 to 78 days. Stock at 33x FY16 is not cheap. PBT growth in 4Q is just 6%. The YoY growth in PAT in 4Q is because of lower taxes
Q4FY16 Investor presentation
http://www.ajantapharma.com/AdminData/InvesterPresentation/InvestorPresentation-Q4FY2015-2016.pdf
Overall doesnât look like a good quarter
I used the rally to exit from Ajanta. While the company is still a great one to own, from valuation perspective I am a bit hesitant paying the 36x TTM earnings, especially with margins not showing any further expansion. Revenue growth of 15%-20% does not justify 36x TTM earnings.
All said and done, Ajanta is not the only one. Market seems frothy with respect to high quality, growing companies. I prefer missing out on 20-25% returns than staying put in this frothy situation.
@hitesh2710 Sir, Can you check if Ajanta has formed Flag pattern on weekly charts?
Targets mentioned
2 Likes
hi
I also had marked a similar pattern in my charts but looking at
fundamentals it seems it would take some more time and even better results
to get there.
And since its a longish term pattern it could remain rangebound before
taking off.
Ideal flags happen halfway in an uptrend.
5 Likes
Saw this news piece on Ajanta investing into an unrelated area (Restaurants)
Though, it could be an investment by the promoters in their personal capacity.
If itâs at the company levelâŚseems like a red flag to me.
5 Likes
Ajanta Pharma announces the US FDA approval of Zolmitriptan Tablets
Mumbai, India â (24th May, 2016) - Ajanta Pharma Limited, (Reuters: AJPH.NS, Bloomberg:
AJP:IN, NSE: AJANTPHARM, BSE: 532331), today announced the receipt of final approval
for Zolmitriptan tablets (2.5mg, 5mg) from the U.S. Food and Drug Administration (FDA).
Zolmitriptan is used in the acute treatment of migraine and is a bioequivalent generic version
of ZomigÂŽ1
.
Zolmitriptan Tablets is part of an ever-growing portfolio of products that Ajanta has
developed for the U.S. market. To date, the United States Food & Drug Administration (U.S.
FDA) has granted Ajanta Pharma 9 ANDA final approvals and 2 tentative approvals.
Additional 15 ANDAs are under review with the FDA.
3 Likes
- Ajanta has received final approval for Voriconazole Tablets (50mg & 200mg) from USFDA.
- Bioequivalent and therapeutically equivalent to VFENDÂŽ Tablets.
- Used in the treatment of fungal infections.
- Has an estimated market size of US$ 103 million for the twelve months ending Nov 2015 per IMS.
- To date - Final approvals = 10, Tentative approvals = 2 and Under review = 14 ANDAs.
9 Likes
@lustkills
Thanks Sandeep for the data provided.
I had one question though.
The company had 2 ANDA approvals prior to FY-2016 & has received 8 more ANDA approvals in FY-2106., yet there are hardly any sales in the US.
Can anyone help me understand the reason behind this ?
Also, what is the future outlook of sales to the US., for which the approvals have been received ?
I think the reason is they did not have US FDA approved facilityâŚtheir US growth story will start from next year once their Dahej plant goes for commercial productionâŚ
Disc : Invested for long from lower levels
1 Like
Did anyone attend agm? If someone could please add any updates you got from AGM.
Stock seems to have started steep upward trajectory after agm.
Disc: ajanta is 10% of my pf so have vested interest.
Some key points from the AR scanning -
- 8 products approved ; 5 commercialized ; 3 awaiting launch ; 2 ANDA approved; 16 under USFDA review
- Plan to file 8 -12 ANDA every year
- 4 facilities including Dahej thatâs awaiting FDA approval and investing in formulation facility in Guwahati
- Within India presence in fast growing speciality chronic therapies such as opthalmology (rank 5), dermatology (13), cardiology (20) and pain management (45) ; In each category Ajanta grew faster than -IPM average in FY16
- Overall rank in India is 33 with 3000 MRs
- 5 yr stats - Sales CAGR - 26% ; EBITDA - 42% ; NI - 51% ;
- Both ROCE and RONW have seen decline in FY16 from 50% to 42% and 43% to 40% respectively
- In FY16 - Africa revenue grew 32% , Asia 8% and others declined 20%
- Given that Africa is todayâs growth engine and Ajanta is clearly looking at US to be next growth engine - does it create a transition risk e.g. taking eyeballs off the forex movements?
3 Likes
They said the same thing last year and ended up filing low single digit. With no high value molecules in pipeline I doubt if US business will contribute meaningfully in next few years.
Disc: I exited few months ago and views could be biased.
Ajanta Pharma may be among the first to launch generic of US$ 400mn market size drugâŚ
14 Likes