Ajanta Pharma Limited

AJANTPHARM.BO•drug-manufacturers-specialty-generic

Current Price

2,563.75INR

per share

Fair Value

1,358.46INR

Overvalued

88.7%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 12.12%, lower than industry average of 12.71%.

Growth Trajectory

Profitability

In the growth phase company makes 23.94% profit on every dollar of sales, higher than industry average of 20.42%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.24% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

164.02B INR

Equity Value

169.68B INR

FCF Yield

29.97%

Average ROIC

24.80%

Cost of Capital

7.83%

P/E Ratio

35.85x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	47.45B INR	41.62B INR
Operating Income or EBIT	12.23B INR	11.25B INR
Interest Expense	252.60M INR	72.10M INR
Book Value Of Equity	37.90B INR	35.67B INR
Book Value Of Debt	474.20M INR	352.80M INR
Cash and Marketable Securities	6.14B INR	4.60B INR
Number of Shares Outstanding	124.91M	--
Minority interests	0 INR	0 INR
Current Stock Price	2563.75 INR	--
Effective Tax Rate	27.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+1.31%

14.02%Company

12.71%Industry

Above Industry

Operating Margin

+5.36%

25.78%Company

20.41%Industry

Above Industry

Ajanta Pharma Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 66% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	108.40B INR	Add
Present Value (Cash Flow Over Next 10 Years)	55.62B INR	Add
Value of Operating Assets	164.02B INR	Sub-total
Debt	474.20M INR	Subtract
Minority Interests	—	Subtract
Cash	6.13B INR	Add
Value of Equity	169.68B INR	Sub-total
Number of Shares	124.91M shares	Divisor
Estimated Value per Share (Fair Value)	1.35K INR	Total
Current Market Price	2.56K INR	Reference

Financial Projections

Total FCF Present Value

55.62B INR

Avg Revenue Growth

8.65%

Avg Operating Margin

23.53%

Avg ROIC

24.80%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	53.39B INR	59.86B INR	67.12B INR	75.25B INR	84.38B INR	93.34B INR	101.86B INR	109.64B INR	116.38B INR	121.79B INR	127.46B INR
Growth Rate	12.52%	12.11%	12.11%	12.11%	12.11%	10.62%	9.13%	7.63%	6.14%	4.65%	4.65%
PROFITABILITY
Operating Income	13.76B INR	14.70B INR	16.07B INR	17.55B INR	19.16B INR	21.20B INR	23.13B INR	24.90B INR	26.43B INR	27.66B INR	28.95B INR
Operating Margin	25.78%	24.55%	23.94%	23.32%	22.71%	22.71%	22.71%	22.71%	22.71%	22.71%	22.71%
EBIT (1-tax)	10.05B INR	10.73B INR	11.73B INR	12.81B INR	13.99B INR	15.35B INR	16.61B INR	17.73B INR	18.66B INR	19.36B INR	20.26B INR
CASH FLOW
Reinvestment	4.38B INR	4.92B INR	5.51B INR	6.18B INR	6.08B INR	8.39B INR	7.66B INR	6.63B INR	5.33B INR	5.58B INR	10.61B INR
Free Cash Flow	5.66B INR	5.81B INR	6.21B INR	6.62B INR	7.90B INR	6.95B INR	8.94B INR	11.09B INR	13.33B INR	13.78B INR	9.65B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	228.21B INR
Present Value	5.27B INR	5.05B INR	5.03B INR	5.01B INR	5.57B INR	4.55B INR	5.43B INR	6.22B INR	6.89B INR	6.54B INR	—
EFFICIENCY
ROIC	31.17%	29.29%	28.23%	27.22%	26.27%	25.87%	24.52%	23.51%	22.74%	22.16%	8.88%
Cost of Capital	7.23%	7.23%	7.23%	7.23%	7.23%	7.56%	7.89%	8.22%	8.55%	8.88%	8.88%
Sales/Capital	1.47x	1.47x	1.47x	1.47x	1.47x	1.01x	1.01x	1.01x	1.01x	1.01x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)