Buy Ajanta Pharma, target price Rs 1580: ICICI Securities

ICICI Securities has buy call on Ajanta Pharma with a target price of Rs 1580. The current market price of Ajanta Pharma is Rs 1440.35.

Ajanta Pharma, incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 18277.05 Crore) operating in Pharmaceuticals sector.

Ajanta Pharma key Products/Revenue Segments include Pharmaceutical Products, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2023.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 918.67 Crore, down -8.74 % from last quarter Total Income of Rs 1006.70 Crore and up 2.10 % from last year same quarter Total Income of Rs 899.77 Crore. Company has reported net profit after tax of Rs 122.25 Crore in latest quarter.

The company’s top management includes Mr.Mannalal B Agrawal, Mr.Madhusudan B Agrawal, Mr.Yogesh M Agrawal, Mr.Rajesh M Agrawal, Mr.Chandrakant M Khetan, Mr.K H Viswanathan, Mr.Prabhakar R Dalal, Dr.Anjana Grewal. Company has B S R & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 13 Crore shares outstanding.

Investment Rationale
The brokerage sees Abbott and Ajanta to likely grow organically at a faster pace of 15-16%.

Promoter/FII Holdings
Promoters held 66.11 per cent stake in the company as of 31-Mar-2023, while FIIs owned 10.0 per cent, DIIs 15.52 per cent.