Monday 12 May 2014

Ajanta pharma is a buy at CMP

Company profile-

Ajanta Pharma is a specialty pharmaceutical company engaged in development, manufacture and marketing of quality finished dosages in domestic and international markets. Established in 1973 and headquartered in Mumbai-India, they are committed to 'Serve Health Care Needs Worldwide'. Ajanta has been consistently providing high quality affordable medicines to patients in different parts of the world.

they employ over 4,000 people worldwide and their products are sold in over 40 countries. Ajanta operates with 5 state-of-the art manufacturing facilities that produce high quality pharmaceutical products. they focus on commercializing unique generic products and pioneering synergistic combination products in the therapeutic areas of anti-malarial, Cardiovascular, dermatology, male erectile dysfunction, musculoskeletal, and ophthalmology.

In India, they have significant presence in the fast growing specialty therapeutic segments of Cardiovascular, dermatology, ophthalmology and musculoskeletal. With primary focus on new product innovation and introduction, they have been consistently identifying unmet medical needs and introducing many first-to-market products to cater to those needs. their products provide patient compliance and convenience over existing therapeutic options. Gaining first mover advantage, many of their brands hold leadership positions in their respective sub- therapeutic segments.

Ajanta has extensive presence in many countries in Asia, Africa and Latin America with customized product portfolio to suit the needs of each country. Having successfully gone through USFDA inspection, they have started commercial operations in the US market in the first quarter of 2013. With a portfolio of 23 ANDAs which have been filed with the US FDA, they look forward to the US market to be their key growth driver in coming years.

they have an advanced Research & Development Centre for finished formulations and Active Pharmaceutical Ingredient (API) synthesis of different dosage forms. ‘Advent’, their R&D centre has a team of over 300 scientists working on innovative products for various markets across the globe. they have acquired strong capabilities for developing generic formulations and process chemistry over the years.

Committed to patient care since inception, their focus on specialty segments in India and simultaneous opening of new international markets has been accelerating their growth over the years. Ajanta’s team members are driven to fulfill its mission; a commitment to ‘Serving Global Healthcare needs with Empathy, Innovation & Technology’. 


Performance- 

Company is continuously improving it's result which is getting reflected in stock price. In last quarter company has posted 311 crs. revenue and 70 crs profit. With the EPS of 20 rs. in a quarter, company  will continue to post overall EPS of more than 75 Rs. per year. Comparing current market price of 1038 Rs. company is ruling at 14 PE which is significantly undervalued respect to other peer companies. We expect company has huge potential going forward and we will likely to see the levels of 1400 in coming 6 months.

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