Ajanta Pharma Limited
Ajanta Pharma Limited Fundamental Analysis
Ajanta Pharma Limited (AJANTPHARM.NS) shows moderate financial fundamentals with a PE ratio of 36.68, profit margin of 19.50%, and ROE of 26.06%. The company generates $52.0B in annual revenue with strong year-over-year growth of 10.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AJANTPHARM.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAJANTPHARM.NS demonstrates superior asset utilization.
Valuation Score
WeakAJANTPHARM.NS trades at a premium to fair value.
Growth Score
ExcellentAJANTPHARM.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAJANTPHARM.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateAJANTPHARM.NS maintains healthy but balanced margins.
Key Financial Metrics
Is AJANTPHARM.NS Expensive or Cheap?
P/E Ratio
AJANTPHARM.NS trades at 36.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AJANTPHARM.NS's PEG of 8.63 indicates potential overvaluation.
Price to Book
The market values Ajanta Pharma Limited at 8.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.38 times EBITDA. This signals the market has high growth expectations.
How Well Does AJANTPHARM.NS Make Money?
Net Profit Margin
For every $100 in sales, Ajanta Pharma Limited keeps $19.50 as profit after all expenses.
Operating Margin
Core operations generate 36.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.06 in profit for every $100 of shareholder equity.
ROA
Ajanta Pharma Limited generates $17.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ajanta Pharma Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Ajanta Pharma Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
AJANTPHARM.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.42
vs 25 benchmark
How AJANTPHARM.NS Stacks Against Its Sector Peers
| Metric | AJANTPHARM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.68 | 29.78 | Worse (Expensive) |
| ROE | 26.06% | 792.00% | Weak |
| Net Margin | 19.50% | -24634.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.25 | Strong (Low Leverage) |
| Current Ratio | 2.93 | 4.60 | Strong Liquidity |
| ROA | 17.89% | -18106.00% (disorted) | Strong |
AJANTPHARM.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ajanta Pharma Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.72%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
105.78%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
164.92%
Industry Style: Defensive, Growth, Innovation
High Growth