Ajanta Pharma Shares Complete Fundamental Analysis and Future Outlook
Ajanta pharma focuses mostly on 4 major healthcare categories in India which include cardiology, dermatology, ophthalmology and pain management. They have a 270+ product basket and are driven by first to market philosophy. The other segment is exporting to emerging markets like Africa and other Asian countries. The export business is generally focused on generic drugs.
- Ajanta Pharma shares have seen a good recovery in the year 2019 and are now trading very close to its 52 weeks high. It currently has a market capitalization of INR 119 Billion.
- The company operates in the speciality and generic drug industry. Market dominance is determined by R&D and distribution network. Ajanta Pharma has 3000+ Medical representatives along with 15+ manufacturing facilities in India and Mauritius.
- It competes with other large companies like Sun Pharma, Dr Reddy Laboratories and Biocon. These companies have better R&D facilities and a larger distribution network.
- The company has very clearly distinguished its business segments. The therapeutic drug business focuses on 4 major segments of cardiology, dermatology, ophthalmology and pain management in India.
- The generic drug business is mostly export-oriented with presence in 19 countries in Africa, 10 in Asia and USA. This makes them a good player in niche drugs category and brings additional revenue from exports business.
I have evaluated the company on 10 fundamental categories and each has been given a rating out of 5 stars. From this, I have arrived at a combined stock rating for the company.
This is the summary of the analysis. You can read the detailed analysis with the excel models on my blog (Check the source link)
Source: Ajanta Pharma Shares Complete Fundamental Analysis
Some insights for the coming years from management discussion & analysis (MD&A) and con calls are as follows.
- The COVID-19 outbreak in the world has changed the prospects for most of the pharmaceutical companies. Since the company is strategically present in the therapeutic and generic business it is not expected to suffer much.
- The demand for generic drugs is expected to pick up in Asia and Africa in the coming years.
- Ajanta Pharma is currently 2nd largest player in the Opthalmology medicines and is expected to grow faster than the market in the coming years.
- The management is focused on increasing the portfolio of 270+ products and also strengthen its presence in emerging markets of Asia and Africa.
The company shows promising growth opportunities especially with the increase in additional manufacturing capacity.
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