2 AJANTPHARM share price target reports by brokerages below. See what is analyst's view on AJANTPHARM share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We remain positive on AJP given the improving prospects of a revival in its earnings growth. Furthermore, capex is nearly complete and benefits are likely to accrue from end-FY20. We value AJP at 22x 12M forward earnings (superior profitability and return ratios) and arrive at a price target of INR1,655. Re-iterate Buy.
We expect 16% earnings CAGR over FY19-22E, led by 14% DF sales, 15% Asia sales and 29% US sales, coupled with improved operating leverage. We also raise the P/E multiple to 21x (from 19x earlier) to factor in the industry outperformance in the branded generics segment. We arrive at TP of INR1,435 (from INR1,124 earlier) on 12M forward earnings basis and reiterate Buy.
Q1 was largely driven by strong growth in Africa and the US business. While the tender business is expected to remain subdued, the branded business (74% of overall revenues) is likely to grow at 10-11%. US business is expected to grow ~30%, albeit on a lower base. Overall, we expect double digit growth in revenues but dent in gross profit, EBITDA and net profit margins due to a change in the product mix (higher US contribution), new plant related expenses and higher depreciation. We arrive at our target price of Rs 1010 based on 20x FY21E EPS of ~| 50.5.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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