Ajanta Pharma - In-Line Q4, Poised For Re-Rating: Dolat Capital
An employee monitors a mixing machine filled with antibiotic 500mg film tablets during manufacture. (Photographer Oliver Bunic/Bloomberg).

Ajanta Pharma - In-Line Q4, Poised For Re-Rating: Dolat Capital

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Dolat Capital Report

Ajanta Pharma Ltd. reported an-in-line Q4 and FY21.

Top-line grew 11% YoY, driven by strong recovery in India (23% YoY). U.S. was in line at $23 million (8% QoQ, 21% YoY).

This was partially offset by dismal performance in branded exports owing to supply disruption.

Company exhibited strong cost control measures (also aided by lower research and development) leading to Ebitda margins at 34.3% (up 200 basis points QoQ), versus our estimate of 30%.

For FY21, company has reported Ebitda margins of 34.6% and profit growth of 40% YoY at Rs 6.5 billion.

Higher Ebitda, better working capital management and end of the capex cycle contributed to Rs 3 billion free cash flow in FY21 (Rs 2 billion in FY20).

Click on the attachment to read the full report:

Dolat Capital Ajanta Pharma Q4FY21 Result Update.pdf

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