Ajanta Pharma - Rewriting The Future Of India In Pharma Industry

Ajanta Pharma is a specialty pharmaceutical company engaged in the development, commercialization and manufacture of pharmaceutical products. The company products are sold over 30 countries world-wide. Ajanta Pharma Ltd has planning to establish two separate manufacturing facilities an investment of around Rs.400 crores & it will be completed in 24 months. The company has planned to launch its first new product in US market in first quarter of next financial year. During the quarter, the robust growth of Net Profit is increased by 56.25% to Rs.195.80 million. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 30% over 2011 to 2014E respectively Annual Estimated Results: (As per PriceWaterCoopers Report on the company)                                                                                                              (Amount in Cr) Years FY12 FY13 FY14 Net Sales 604.26 725.22 819.39 EBITDA 133.15 164.60 190.05 Net Profit 66.92 84.76 100.92 EPS 28.19 (adj) 35.93 42.78 P/E 13.48 10.58 8.88 Stock Price Estimates: Current Market Price: 421.50 The stock has appreciated from 144.55 in Oct 2011 to 447.70 just a few days back, which means an increase of 309.7% in just 11 months, which is commendable. As per the analysis the company is still good for much more. The promoters of the company has been on a buying spree and have taken their holding up to 71.84% till Jun 2012 as per official figures. As one can see the buying they have done after June 12, it seems that their holding might have reached around 73%.  In spite of 300% jump in past year, the promoters are still buying daily and aggressively which is good to see. Promoters can hold maximum up to 75% in a private company, which is their target, and it should be achieved within next 2 quarters.