Ajanta Pharma - Healthy Work-In-Progress On Reducing Cost Pressure To Boost Outlook: Motilal Oswal

Domestic formulation- New launches/better MR productivity to drive industry outperformance.
<div class="paragraphs"><p>Colorful pills. (Source: freepik)</p></div>
Colorful pills. (Source: freepik)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

We met with the management of Ajanta Pharma Ltd. recently to understand its business outlook in further details.

Ajanta Pharma has enhanced its efforts to improve profitability over the next two-three years.

Superior execution in the branded generics segment across domestic formulation, Asia and Africa would result in industry outperformance. This will be further supported by relief on the cost front, which would pave the way for at least 200 basis points margin expansion over FY23-25E.

However, the U.S. generics growth prospects might moderate due to slowdown in the pace of approvals over the near term.

We expect 15% earnings compound annual growth rate over FY23-25 versus 4% YoY earnings decline in FY23.

Ajanta Pharma had multiple headwinds such as higher raw material costs and operating deleverage over the past 12-15 months, leading to historically lower margins in nine months-FY23. However, with efforts in place to overcome these hurdles, there is scope of better margins from FY24 onwards.

Click on the attachment to read the full report:

Moilal Oswal Ajanta Pharma Update.pdf
ITC - Earnings Visibility Continues To Drive Outperformance: Motilal Oswal


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Get Regular Updates