STOCK IN FOCUS
* Ajanta Pharma (AJP) closed 1.2% higher compared to fall of 2.7% in benchmark NIFTY.
* We believe that AJP’s long-term fundamentals continue to remain healthy driven by strong traction in India business and healthy growth in Asia and the US led by new launches.
* We envisage AJP’s domestic formulations business to clock 14.9% CAGR over FY18-20E led by improved sales force productivity and new launches (15-20/annum).
* We expect strong recovery in sales and earnings in FY20E with sales and PAT growth of 14.3% YoY and 40% YoY, respectively. Return ratios are also expected to remain healthy (RoCE & RoE seen at 22% & 18%) in FY20E.
* We maintain our BUY recommendation on the stock with a Target Price of Rs1,360, valuing at 24x FY20E EPS of Rs56.7.
To Read Complete Report & Disclaimer Click Here
For More Reliance Securities Ltd disclaimer at http://www.rsec.co.in/disclaimer SEBI registration No. INH000002384
Above views are of the author and not of the website kindly read disclaimer