Ajanta Pharma Limited Fundamental Analysis (NSE: AJANTPHARM.NS)
Ajanta Pharma Limited Fundamental Analysis (NSE: AJANTPHARM.NS)
Ajanta Pharma Limited (NSE: AJANTPHARM.NS) shows moderate financial fundamentals with a PE ratio of 40.07, profit margin of 19.65%, and ROE of 25.67%. The company generates $57.8B in annual revenue with strong year-over-year growth of 10.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.2/100 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
WeakAJANTPHARM.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAJANTPHARM.NS shows balanced valuation metrics.
Growth Score
ExcellentAJANTPHARM.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateAJANTPHARM.NS shows balanced financial health with some risks.
Profitability Score
ExcellentAJANTPHARM.NS achieves industry-leading margins.
Key Financial Metrics
Is AJANTPHARM.NS Expensive or Cheap?
P/E Ratio
AJANTPHARM.NS trades at 40.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AJANTPHARM.NS's PEG of 1.81 indicates fair valuation.
Price to Book
The market values Ajanta Pharma Limited at 10.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.67 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 $19.65 as profit after all expenses.
Operating Margin
Core operations generate 37.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.67 in profit for every $100 of shareholder equity.
ROA
Ajanta Pharma Limited generates $0.00 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 $2.84B, signaling weaker underlying cash strength.
Free Cash Flow
Ajanta Pharma Limited generates weak or negative free cash flow of $1.10B, restricting financial flexibility.
FCF Per Share
Each share generates $8.84 in free cash annually.
FCF Yield
AJANTPHARM.NS converts 0.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How AJANTPHARM.NS Stacks Against Its Sector Peers
| Metric | AJANTPHARM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.07 | 30.97 | Worse (Expensive) |
| ROE | 25.67% | 515.00% | Weak |
| Net Margin | 19.65% | 30197.00% | Weak |
| Debt/Equity | 0.00 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 5.71 | Weak Liquidity |
| ROA | 0.00% | -16.00% (disorted) | Weak |
AJANTPHARM.NS outperforms its industry in 1 out of 6 key metrics, 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
87.25%
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