Multi Baggers

Hem Securities

5.30 AM Jan 1st 1970

Ajanta Pharma

BSE ID : 532331 NSE ID : AJANTPHARM

RECOMMENDED PRICE 278.00

PEAK FROM RECO 1804.70 549.17%

CURRENT PRICE 2088.65 Resource id #12

Ajanta Pharma Limited, a specialty focused pharmaceutical formulation company, has entered in Top 50 companies in the India, in the domestic market as per IMS ranking for March 2012.

Ajanta Pharma

Ajanta Pharma Limited, a specialty focused pharmaceutical formulation company, has entered in Top 50 companies in the India, in the domestic market as per IMS ranking for March 2012.

APL focus on commercializing unique generic products and pioneering synergistic combination products in the therapeutic areas of anti- malarial, cardiology, dermatology, gastroenterology, musculoskeletal, ophthalmology and respiratory.

APL has registered sharp numbers for the quarter ending March 2012. The sales surged to Rs. 1761.04 million, up 39.83% for the March 2012 quarter as against Rs. 1259.46 million during the corresponding quarter previous year. The Company has registered operating profit of Rs. 398.43 million for the quarter ended March 2012, zoomed about 43% over Rs. 278.67 million achieved in the corresponding quarter of last year. The fourth quarter performance has been quite satisfactory with net profits climbing about 35% at Rs.235.98 million from Rs.174.66 million yo-y. EPS for the quarter stood at Rs.20. APL is also splitting of its equity share of Rs.10 each in to 2 equity shares of Rs.5 each.

Many of the company's products are first of its kind and are leading in their sub therapeutic segments. Company exports its products to more than 25 countries and established strong brand equity in these markets. Ajanta's presence in the continents of Asia, Middle East, Africa and Latin America, gives it an advantage in terms of market spread and huge growth potential.

Valuation

With strong product portfolio, wide geographic spread, sound R&D and manufacturing excellence, APL enjoys a unique position and depicts a strong platform for sustained growth in coming years. We believe Ajanta Pharma Ltd. is trading at an attractive valuation at 7.65x and 6.44x of FY12EPS of Rs.71.47 and FY13EPS of Rs.84.84. We initiate a 'BUY' on the stock with a target price of Rs.680 (appreciation of about 25%) with the medium to long term investment horizon.

For full report, click on the attachment

*Price adjusted for Split

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AjantaPharma_HemSec_Multibagger.pdf