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Ajanta Pharma Ltd

NSE: AJANTPHARM BSE: 532331

3048.20

(1.61%)

Thu, 19 Mar 2026, 03:51 pm

Ajanta Pharma Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (4.1x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
  • Ajanta Pharma's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Ajanta Pharma's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Ajanta Pharma's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Ajanta Pharma's earnings are expected to exceed the low risk growth rate next year.
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • An improvement in Ajanta Pharma's performance (ROE) is expected over the next 3 years.
  • Ajanta Pharma's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Ajanta Pharma is expected to increase but not above the 50% threshold in 2 years time.
  • Ajanta Pharma's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • Ajanta Pharma's earnings growth is positive but not above the India market average.
  • Ajanta Pharma's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Ajanta Pharma is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Ajanta Pharma's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Ajanta Pharma's revenue is expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Ajanta Pharma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ajanta Pharma is profitable, therefore cash runway is not a concern.
  • Ajanta Pharma is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (1047.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 37.7x debt.
  • Ajanta Pharma's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (8.6% vs 1.7% today).
  • Interest payments on debt are well covered by earnings (EBIT is 49.3x coverage).
  • Ajanta Pharma's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Ajanta Pharma board of directors is about average.
  • Yogesh's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Yogesh's remuneration is higher than average for companies of similar size in India.
  • Ajanta Pharma individual insiders have sold more shares than they have bought in the past 3 months.

misc

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Pros

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    Cons

    • Ajanta Pharma has significant price volatility in the past 3 months.

    past

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    Pros

    • Ajanta Pharma's 1-year earnings growth exceeds its 5-year average (20.8% vs 3%)
    • Ajanta Pharma's year on year earnings growth rate has been positive over the past 5 years.
    • Ajanta Pharma used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
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    Cons

    • Ajanta Pharma's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Ajanta Pharma has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Ajanta Pharma's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (20.8% vs 22.7%).

    value

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    Pros

    • AJANTPHARM outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • AJANTPHARM outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Ajanta Pharma's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Ajanta Pharma's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Ajanta Pharma is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Ajanta Pharma is poor value based on expected growth next year.
    • Ajanta Pharma is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
    • Ajanta Pharma is overvalued based on earnings compared to the India market.
    • NSEI:AJANTPHARM is down -1.4% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:AJANTPHARM is down -1.4% underperforming the market in India which returned 8% over the past month.

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