Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Ajanta Pharmaceuticals; target of Rs 1810: ICICI Direct

ICICI Direct is bullish on Ajanta Pharmaceuticals has recommended buy rating on the stock with a target price of Rs 1810 in its research report dated July 31, 2020.

August 03, 2020 / 04:15 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Ajanta Pharmaceuticals

Q1FY21 revenues grew 9.2% YoY to Rs 668 crore mainly due to 46.1% growth in the US business to Rs 149 crore and 27.8% growth in Asia revenues to Rs 161 crore. Domestic revenues de-grew 10.3% YoY to Rs 174 crore. EBITDA margins improved 589 bps to 33.4% mainly due to lower other expenditure. Subsequently, EBITDA grew 32.6% YoY to Rs 223 crore. Net profit grew 28.9% YoY to Rs 148 crore. Delta vis-à-vis EBITDA was mainly due to higher tax rate and depreciation partially offset by higher other income.

Outlook

The company remains a play on global branded generics space. We arrive at our target price of Rs 1810 based on 25x FY22E EPS of ~Rs 72.5.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 3, 2020 12:36 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347