How Has Ajanta Pharma’s Stock Performed Over Time?
As of May 12, 2025, Ajanta Pharma is trading at ₹2,542 per share, giving it a market capitalization of ₹31,753 crore. The stock has shown steady long-term performance with a 52-week high of ₹3,486 and a low of ₹2,022. Over the last year, the stock has delivered a moderate 6.75% return, reflecting resilience in a volatile market.
Source: Screener
What Are Ajanta Pharma’s Core Business Segments?
Ajanta Pharma operates in four primary segments:
- India – Branded Generics: Focused on chronic therapies like cardiology, dermatology, ophthalmology, and pain management.
- Emerging Markets: Offers branded generics across 30+ countries in Asia and Africa.
- USA Generics: Develops and markets generic drugs in the highly regulated US market.
- Africa Institutional Business: Supplies pharmaceutical products to government and institutional buyers.
The company follows a niche product strategy, often launching first-to-market drugs across its therapeutic focus areas.
What Are the Key Financial Metrics?
Ajanta Pharma’s financials paint a picture of strong profitability and prudent capital management:
| Metric | Value |
|---|---|
| Market Capitalization | ₹31,753 crore |
| Current Stock Price | ₹2,542 |
| Price-to-Earnings (P/E) Ratio | 34.5 |
| Book Value | ₹290 |
| Price-to-Book (P/B) Ratio | 8.74 |
| Dividend Yield | 1.44% |
| Return on Capital Employed | 33.3% |
| Return on Equity (ROE) | 25.6% |
Source: Screener
How Does Ajanta Pharma Compare with Peers?
Here’s how Ajanta stacks up against other pharmaceutical midcaps:
| Company | Market Cap (₹ Cr) | P/E | ROCE (%) | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|---|
| Ajanta Pharma | 31,753 | 34.5 | 33.3 | 25.6 | 1.44 |
| Torrent Pharma | 1,07,697 | 57.9 | 23.2 | 24.2 | 0.90 |
| Gland Pharma | 23,494 | 33.4 | 13.6 | 9.26 | 1.40 |
| ERIS Lifesciences | 19,829 | 60.2 | 11.3 | 16.3 | 0.50 |
| Marksans Pharma | 10,321 | 28.0 | 20.6 | 16.5 | 0.27 |
Ajanta outperforms peers in ROCE and ROE, reflecting capital efficiency and consistent profitability.
Source: Screener
What Is the Shareholding Pattern?
As of the latest data:
- Promoters: 66.26%
- Mutual Funds: 15.13%
- FIIs: 8.86%
- Retail and Others: 7.40%
- Other Domestic Institutions: 2.35%
Promoter holding remains stable with minimal pledging, indicating strong management trust.
Source: Groww
What Are Ajanta Pharma’s Recent Developments?
- Capacity Expansion: Ajanta plans to double manufacturing capacity from 6 to 12 million bottles annually with a ₹92 crore investment.
- Q4 FY25 Results Announcement: The company is expected to release its financials by April 30, 2025.
These developments show Ajanta’s continued focus on scaling operations.
Source: Screener
What Are Ajanta Pharma’s Future Plans?
- R&D Focus: Plans to file 10–12 ANDAs (Abbreviated New Drug Applications) in FY26.
- Capital Expenditure: Budgeted ₹175–200 crore in FY25 vs ₹160 crore in FY24.
- Workforce Growth: Intends to hire 200 additional medical representatives in FY25.
Source: Screener
How Is the Pharmaceutical Sector Performing?
India’s pharmaceutical market, currently valued at ~$58 billion, is expected to reach $120–130 billion by 2030 and $400–450 billion by 2047. Growth drivers include increasing healthcare awareness, rising chronic conditions, and favorable government policies.
Source: India Briefing & Industry Reports
Has Ajanta Pharma Run Any Notable Campaigns?
Ajanta ran a CPR awareness campaign across India between April 2024 and January 2025, earning recognition in the Asia Book of Records as the largest CPR awareness and training drive.
Source: Company Recognition Page
What Are the Key Pros and Cons?
Pros:
- Strong ROCE and ROE indicating efficient operations.
- Zero debt, healthy cash flows.
- Consistent product pipeline with differentiated offerings.
- Expanding global presence, especially in the U.S. and emerging markets.
Cons:
- High P/E ratio vs smaller peers.
- Limited moat vs larger players.
- High competition in generics segment in US.
Ajanta Pharma offers a compelling case of capital-efficient growth in India’s pharmaceutical space. With a solid presence across geographies, strong promoter holding, and a pipeline of differentiated products, it remains a stock worth watching for informed investors.
Disclaimer: This blog is strictly informational and does not constitute investment advice.
Data Sources: Screener.in, Groww
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