Growth mentioned above is sequential growth between Dec to Mar Quarter. Last year, additional EPS from subsidiary was 7 (11pre bonus), i dont know what was in my mind when I mentioned 3-5 :(.
Ajanta results are out. Quite spectacular as expected by valuepickr.
EPS: 19.94 Q4, 66.5 FY14
Q4 revenue growth 25%, Net Profit growth 159%
FY14 Revenue growth 32%, Net Profit growth 118%
Might have a spectacular run up today.
Ajanta has again posted superb numbers.
Sales: 311cr. vs. 249cr.,YoY
PAT: 70cr. vs. 27cr.,YoY.
For the full year.
Sales: 1208cr. vs. 931cr.(in FY13)
PAT: 234cr. vs. 112cr. (in FY13)
EPS at 66.54 for FY14.The company has filed 1 more ANDA in Q4 taking the tally to 23.With only 2 approved so far.R&D expense at 4.5% of revenues.
ebidta margin at 35.5% …just amazing !!!
35.5% ebitda margin in q4 compared to 32.3% in q3’14 and 27.4% in q4’14…
depreciation has increased from 9.49 cr in q3’14 to 14.89 cr in q4’14…
Results are suber specially from bottom line perspective. Topline growth has decreased to 25 % but should increase once new plants are operational. Higher depreciation charge and increased fixed assets does provide pointer, but no confirmed news as yet.
Plant completions and ANDA approvals should act as next triggers. But even at current price, its at 16 trailing PE which is very very cheap for a pharma stock having very less exposure to US market.
All, was just checking investor presentations for Ajanta from Jan and May 2014. The commercialization of Dahej facility is now expected in Q1 2016 instead of Q1 2015. No explanation has been given on what has suddenly changed within these 4 months. i think it deseves an answer from management. Is it possible to get it checked.
Yes Gaurav … indeed awesome results … mere 25% revenue growth with sustaining margins should rerate the stock to 23-24 PE levels on par with IPCA and ALEMBIC. Seems like a pick with 80-100% return in an yr.
I believe Dahej commercialization in q12016 should have been a typo as there was no specific explanation from the management on the reasons for such delay. Believe they will correct it tomorrow if it is a typo.
as per their website, expected dates are Jun 2014 and Dec 2014 for new plants
http://www.ajantapharma.com/formulations.html
“Looking at the growth plans in the coming years, the company is in the process of setting-up 2 separate manufacturing facilities a one for regulated markets and other for emerging markets. Construction work is under way of both these facilities with an objective to start commercial production by Jun 2014 and Dec 2014 respectively.”
FY 14 eps is 66. Putting in some back of the envelope calculations,
20% growth gives fy 15 eps at 79
25% growth gives fy 15 eps at 83
30% growth gives fy 15 eps at 86.
For all these projections the stock even after the run up at around 1100 odd levels looks attractive with a possibility of 40-50% upside within one year.
disc: invested.
Excellent results by Ajanta Pharma. There are two things that will lead to price appreciation one is
1). Expansion of PE multiple from15 to 20
2). Increase in earnings assuming 20% growth.
Indianivesh has increased price target to 1385 and Right Horizons to 1500. Stock is looking really interesting.
Excellent results by Ajanta Pharma. There are two things that will lead to price appreciation one is
1). Expansion of PE multiple from15 to 20
2). Increase in earnings assuming 20% growth.
Indianivesh has increased price target to 1385 and Right Horizons to 1500. Stock is looking really interesting.
Excellent results by Ajanta Pharma. There are two things that will lead to price appreciation one is
1). Expansion of PE multiple from15 to 20
2). Increase in earnings assuming 20% growth.
Indianivesh has increased price target to 1385 and Right Horizons to 1500. Stock is looking really interesting.
Please delete the duplicate posts
Much better results than what I’d expected. Regarding valuation I’m still little baffled as it why a pharma company with 40% ROCE is trading at 17x TTM. I know each pharma cos is different but Alembic and Shilpa is trading at 25x. Maybe it has run up 11 times in the last 3 years or maybe the market is “waiting” for Dahez/Savli plant to be operational or maybe the market knows something that I’m not yet discounting.
Anyway it is all good news as far as I’m concerned and will increase my stake at any minor blip in the price and buy aggressively if available at ~14x TTM or lower.
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One reason I witness is lack of Mutual fund holding. Deep ignorance.
Can anyone comment further?
Kunal
Motilal Oswal MOSt Focused Midcap 30 Fund currently holds Ajanta Pharma.
http://www.valueresearchonline.com/funds/comres.asp?code=6424
Was going through Lupin’s results,a while back.They have done an EPS of 41 for Fy14 on a consol. basis.This translates to a P/E multiple of about 25,on a TTM basis.Interestingly,this is about the same multiple that markets have started paying for Alembic too! Now Lupin grew by about 15% in Q4 in the Domestic markets.So,I don’t think any company would come even close to the growth rates clocked by Ajanta in DomM’.s,except maybe a Sun Pharma.Isn’t this how companies are judged: performance in tough times? A look at Ajanta’s financials would reveal that they have been more or less unfazed by the slowdown in Dom.M’s. This itself calls for re-rating.The IndiaNivesh report pegs the revenue growth at 20%+ & an EBITDA of 30%+.Knowing the AP management,these maybe conservative estimates.Anyway,we still have visibility for steady growth.2-3 ANDA approvals every year,own front end in US,level headed approach to US markets & capacity expansions coming up.To top all this,we have excellent return ratios too.All in all,AP seems a stock waiting to be ‘discovered’ & re-rated further.It has probably lost its glamour/sexy quotient over the past year,as Hitesh bhai said,but that IS the opportunity.
Reply from investor relations regarding the difference in date of commercialization for Dahej facility.
"
The date of commercialisation mentioned in the current presentation refers to actual shipping of goods from that facility. Before we start the actual shipping, the new plant needs to manufacture and produce exhibit batches & validation batches, which will take anything between 6 to 9 months time. This is the normal practice in the industry.____
In earlier presentations, the word âcommercialisationâ was erroneously mentioned, which actually was completion of facility and ready for production, which date still stands. The sales projections from this plant anyway was considered for FYâ16 only.____
Hope this clarifies the position.
"
So that clarifies that their arent any delays, the plant is slated to be completed by Jun’14 as mentioned in varios presentations.