Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

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<li>
<a href="https://www.smartkarma.com/entities/ajanta-pharma-ltd" target="_blank" data-smartkarma-citation="entities:10053:1" rel="noopener">Ajanta Pharma (AJP IN)</a>  together with its subsidiaries, develops, manufactures, and markets finished dosages and markets it both domestic and internationally.</li>
<li>Although the company has been profitable, it does exhibit several concerns on the balance sheet side and few on the governance end.</li>
<li>Major setbacks include elongated cash conversion cycle, declining returns and efficiency ratios, doubts on effectiveness of R&amp;D, and capital allocation woes.</li>
</ul>



Ajanta Pharma (AJP IN)  together with its subsidiaries, develops, manufactures, and markets finished dosages and markets it both domestic and internationally.
Although the company has been profitable, it does exhibit several concerns on the balance sheet side and few on the governance end.
Major setbacks include elongated cash conversion cycle, declining returns and efficiency ratios, doubts on effectiveness of R&amp;D, and capital allocation woes.


Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/aurobindo-pharma-ltd" target="_blank" data-smartkarma-citation="entities:19974:1" rel="noopener">Aurobindo Pharma (ARBP IN)</a> shares have corrected more than 40% from peak and are trading at discount to peers. The company’s U.S. business is under pressure, resulting in deteriorating profitability.</li>
<li>We are not seeing any immediate respite in the U.S. formulation business. Hence, investors can avoid Aurobindo Pharma shares.  </li>
<li>However, value unlocking through stake sale in injectable business can be a near-term catalyst, resulting in relief rally in the stock.</li>
</ul>



Aurobindo Pharma (ARBP IN) shares have corrected more than 40% from peak and are trading at discount to peers. The company’s U.S. business is under pressure, resulting in deteriorating profitability.
We are not seeing any immediate respite in the U.S. formulation business. Hence, investors can avoid Aurobindo Pharma shares.  
However, value unlocking through stake sale in injectable business can be a near-term catalyst, resulting in relief rally in the stock.


Aurobindo Pharma (ARBP IN): Pain Continues in the U.S. Formulation Business

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

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<ul><li>Ajanta Pharma is a focused player in branded, which constitutes ~70% of the overall sales which are spread across geographies including India</li><li>As of FY21, overall exports: domestic formulations ratio was at 70:30</li><li>Target Price and Valuation: Valued at | 2605 i.e. 26x P/E on FY24E EPS of Rs 100.1</li></ul><div class="content-highlight"><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p></div>

Ajanta Pharma is a focused player in branded, which constitutes ~70% of the overall sales which are spread across geographies including IndiaAs of FY21, overall exports: domestic formulations ratio was at 70:30Target Price and Valuation: Valued at | 2605 i.e. 26x P/E on FY24E EPS of Rs 100.1Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ajanta Pharmaceuticals: Momentum in Branded Business Buoys Numbers

<p>About the stock: Ajanta Pharma is a focused player in branded, which constitutes ~70% of overall sales, which are spread across geographies, including India.</p><ul><li>As of FY21, overall exports: domestic formulations ratio was at 70:30</li><li>Among exports, Asia accounts for ~35% of export formulations, Africa 33% &amp; US 32%. The company also participates in anti-malarial tenders in Africa (included in Africa)</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

About the stock: Ajanta Pharma is a focused player in branded, which constitutes ~70% of overall sales, which are spread across geographies, including India.As of FY21, overall exports: domestic formulations ratio was at 70:30Among exports, Asia accounts for ~35% of export formulations, Africa 33% &amp; US 32%. The company also participates in anti-malarial tenders in Africa (included in Africa)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ajanta Pharmaceuticals: Strong Performance on All Fronts

<p>Domestic formulations constitute 30% of the total consolidated turnover and is segregated into branded formulations &amp; institutional business Asia accounts for ~35% of export formulations, Africa 33% &amp; US 32%. The...</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Domestic formulations constitute 30% of the total consolidated turnover and is segregated into branded formulations &amp; institutional business Asia accounts for ~35% of export formulations, Africa 33% &amp; US 32%. The...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ajanta Pharmaceuticals: India Growth Drives Steady Numbers

India

Ajanta Pharma Limited is a pharmaceutical company involved in the areas of product research, manufacturing, and marketing. The Company's manufacturing capabilities include segments such as antiretrovirals, antimalarials, cardiovascular, dermatology, and ophthalmology. The Company also markets over the counter products that include some nature-based remedies.

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Ajanta Pharma (AJP IN)

Ajanta Pharma: Forensic Analysis

Ajanta Pharms's major setbacks include elongated cash conversion cycle, declining returns and efficiency ratios, doubts on effectiveness of R&D,...

Nitin Mangal

Aurobindo Pharma (ARBP IN): Pain Continues in the U.S. Formulation Business

Aurobindo’s U.S. formulation business is witnessing price erosion, which is impacting the revenue and margin. However, value unlocking in...

Tina Banerjee

Ajanta Pharmaceuticals: Momentum in Branded Business Buoys Numbers

Ajanta Pharma is a focused player in branded, which constitutes ~70% of the overall sales which are spread across geographies including India

ICICI Securities Limited

Ajanta Pharmaceuticals: Strong Performance on All Fronts

Ajanta Pharma is a focused player in branded, which constitutes ~70% of overall sales, which are spread across geographies, including India.

ICICI Securities Limited

Ajanta Pharmaceuticals: India Growth Drives Steady Numbers

Domestic formulations constitute 30% of the total consolidated turnover and is segregated into branded formulations & institutional business Asia...

ICICI Securities Limited

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