Ajanta Pharma Limited is a prominent player in the pharmaceutical industry, primarily engaged in the formulation, manufacture, and marketing of a wide array of pharmaceutical products. The company has established itself as a significant contributor t…
Analysis
Hope premium
Ajanta Pharma Limited is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 41.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 16% a year, against analyst forecasts of 15%. The price, in other words, assumes less than the experts do.
Growth is moderate; the safety picture is sturdy. The company scores 17/20 on our value-creation score: strong value creator.
Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202353
92
2023202420252026
All-time high
96
Jan 2024
All-time low
53
Jan 2023
Average rank
75
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
22
23
44
36
Price/Earnings
32
32
49
53
Price/Book
16
23
38
44
Dividend Yield
67
37
29
56
Value (overall)
32
25
37
49
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.