Thanks for the info. Really confused with this one. Should I add ahead the quarterly numbers or exit because of an unconfirmed bad news
ajanta comes out with absolutely fantastic results.
period q2 fy 13 q2 fy 12 h1 fy 13 h1 fy 13
sales 184 135 355 262
NP 22 11.8 41.46 24.38
eps 9.34 5.06 17.66 10.41
Since the second half is significantly better, I expect the company to post eps of close to 42-44 per share.
I am surprised with the strong growth momentum shown by the company. Management were indicating 20% growth but this seems like a case of underpromise and over deliver.
Fantastic results:
Qtrly EPS up by 84.58% yoy from 5.06 to 9.34,
Half yr EPS up by 69.64% yoy from 10.41 to 17.66.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/Ajanta_Pharma_Ltd_251012_Rst.pdf
Looks like this one is headed for 600 Rs. 
Has Anyone looked the chart of Mayur, Ajanta, and Kaveri and compared them. Seems like for last 2 years, they are moving along with each other. One can use this info to tweak one’s portfolio to gain little bit more (i.e. reducing the stocks which are moving far above the average, and increasing the stocks which are moving far below the average line).
Results looks even more fantastic given that the tax rate is around 29.7% in this quarter. Full year eps of 40-42looks very likely.
One common factor is Hitesh. Fantastic!!!
once again superb show hitesh bhai.you are like god to new investers.you are not listed otherwise ‘‘apka cagr sabse achcha hota’’
thanks a lot hiteshbhai.
today’s sbicap result update on ajanta may have thrown some light on the IT raid issue. apparently the IT department raided ajanta’s premises to check for the tax breaks ajanta claimed for R&D expenses and sales promotion fees. apparently they were disallowed expenses for tax benefits. this may mean that ajanta may have to pay tax on the retrospective basis on such claims. to put it in perspective, ajanta spent Rs. 83 crors on r&d between 2010-12. the report doesn’t go into the details of whats the status after the raid and how much could be these contingent expenses. does someone have a better idea on this? If true, this could act as a drag on the stock even after very good results.
hemant
can u email me the sbi caps report ?
thanks.
hi hitesh,
sent it to you. let me know what your thoughts are on this.
regards,
hemant
hemant cud u also send me the sbi cap report
Would not fully agree with the sbicaps report
Though their concerns on tax resulting in increased tax outflow are justified their sales and EBITDA margins assumption are a bit off
If we take Hitesh’s ballpark of Rs 42 EPS for the year and account for increased tax rate which would bring down the estimated EPS by 5-6 rupees I.e. to Rs 36-37 levels
Some negatively can be expected because of the possible overhang of the tax to be paid (how much?) on the 82 crore of R&d expenses spend between 2010-2012 period
thanks hemant for the report.
I went through the report and it seems to be lacking in exact details regarding the tax problems. I would consider it to have more conjecture than facts.
I have sent a mail to the company and will be awaiting the response.
Projections in the report seem to be too pessimistic. Maybe report is prepared by some sell side analyst.
I think payment of retrospective tax if any will be a one off and hence may not affect the company in longer term. Besides we dont know exactly where the problem lies and hence would like to await clarity on the issue.
hitesh.
I got the following response from ajanta people. copy pasting it here.
Dear Shareholder,____
Thank you for your email.____
As a matter of policy, we do not comment on individual reports published by agencies. However, we reiterate our strong determination to continued growth for the organization, which is clearly evident from the results inspite of higher tax burden.____
Regards,____
Investor Grievance Team
I dont know what to make of this response. Fact remains that company has paid higher taxes and therefore something (from tax authorities?) is there which might have induced them to pay higher taxes as compared to earlier quarters.
Till we know about the full details I think I would not be too aggressive in buying at these levels. For those holding it from lower levels, it may make sense to keep riding the upsides.
Hi Hitesh/Hemant,
Can you please send me the SBI Cap report on Ajanta.
subash, you email pls?
I exited today. Made a small profit.
http://economictimes.indiatimes.com/topic/The-office/
[
EXPERT
](http://speed.economictimes.indiatimes.com/etspeedsrcprofile/displayname-Gaurav_Modi.cms)
IST17 Oct 2012,18:00
IT department raids Ajanta Pharma’s offices, under scanner for tax evasion.
This requires some clarification from Management. Will try and get some reaction to
a) tax rate going forward? ~28% vs ~16% earlier
b) Retrospective effect for FY2010-2012? Quantum and timeline
c) Some specifics or colour on the disallowed R&D Exemption
Any other points/implications that should be understood/clarified with the company?
-Donald
Guys,
Please do not put out full email ids on any website. This is open fodder for spammers!!
If you want to send a message to someone, simply click on his underlined username like 'Excel Monkey" inPosted byExcel Monkeyat Friday 15:47
In real urgency, atleast take the caution of putting it down as subhash dot nayak at gmail dot com:). Request Admin to remove the IDs - purpose is served by now I guess.
-Donald