Should Ajanta Pharma be a part of your portfolio ?

Ajanta Pharma Ltd. 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,company is committed to 'Serve Health Care Needs Worldwide'. Ajanta has been consistently providing high quality affordable medicines to patients in different parts of the world.

Products of Ajantha Pharma Ltd are sold in over 40 countries. Ajanta operates with 5 state-of-the art manufacturing facilities that produce high quality pharmaceutical products. Company focuses 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, Ajanta Pharma has significant presence in the fast growing specialty therapeutic segments of Cardiovascular, dermatology, ophthalmology and musculoskeletal. Gaining first mover advantage, many of Ajanta Pharma 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 US FDA inspection, the company has started commercial operations in the US market with its 1st product available on the shelf. With a portfolio of 23 more ANDAs filed awaiting approval from US FDA, Ajanta phama is looking forward to the US market to be key growth driver in coming years.

Ajanta Pharma has delivered 73 percent returns on YTD basis and has generated 155 percent returns on a 1 year basis. On a three year basis the stock has generated an annualised yield of 157 percent. The company has shown steady improvement in the margins and revenue growth. The stock is trading at a premium to its peer Divi's Laboratories and is tarding at a discount to Glenmark Pharmaceuticals. Ajanta is trading at a PE multiple of 45 where as Divi's Laboratories is trading at 29.71 and Glenmark Pharma is trading at 60.39. Given its growth trajectry and good peformance Ajanta Pharma can be an attractive buy in ones portfolio depending on the diversification needs of the portfolio.