Ajanta Pharma Limited (AJANTPHARM) AI Stock Analysis

Ajanta Pharma Limited

(NSE:AJANTPHARM)

Select Model

Rating:74.15Outperform

Price Target:INR 3,909.00▲(11.29% Upside)

Action:reiterated

Date:08/09/26

The score is driven primarily by strong underlying financial quality (solid growth and profitability with a very conservative balance sheet), partially offset by weaker FY2026 cash-flow conversion and some margin compression. Technicals add support due to a clear uptrend and constructive momentum, while valuation is the main headwind given the high P/E and modest dividend yield.

Positive Factors

Revenue and profitabilitySteady revenue growth combined with historically strong net margins indicates durable demand and effective commercial execution. Maintaining profitability while expanding sales can support reinvestment in product launches, therapeutic coverage, and market development over the next several quarters.

Negative Factors

Weak cash-flow conversionThe gap between reported earnings and cash generation reduces near-term earnings quality and makes internal funding less predictable. If working-capital swings or higher cash investments persist, Ajanta Pharma may have less flexibility for launches, expansion, or shareholder returns.

Ajanta Pharma Limited (AJANTPHARM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 438.46B
Dividend Yield: 1.71%
Average Volume (3M): 8,986
Price to Earnings (P/E): 38.6
Beta (1Y): 0.40
Revenue Growth: 25.01%
EPS Growth: 29.68%
Country: India
Employees: 10,421
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Ajanta Pharma Limited Business Overview & Revenue Model

Company Description

Established in 1973 and headquartered in Mumbai, India, Ajanta Pharma Limited operates as a specialized pharmaceutical enterprise. This company, along with its subsidiaries, is dedicated to the development, manufacturing, and commercialization of fin...

How the Company Makes Money

Ajanta Pharma makes money primarily by selling pharmaceutical formulations (finished dosage medicines such as tablets, capsules, creams/ointments, and eye/ear drops) under its own brands and product portfolios. Its key revenue streams generally inclu...

Ajanta Pharma Limited Financial Statement Overview

Summary

Strong fundamentals overall: steady revenue growth and healthy profitability, supported by a conservative, low-leverage balance sheet with consistently strong ROE. The main offsets are margin compression in FY2026 and notably weaker cash conversion/free cash flow in FY2026 versus FY2025, which reduces near-term cash-flow predictability.

Income Statement

84Very Positive

Balance Sheet

92Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	57.76B	54.53B	45.88B	41.62B	37.08B	32.84B
Gross Profit	37.55B	28.05B	34.60B	30.46B	25.91B	23.97B
EBITDA	16.43B	15.67B	13.54B	12.57B	8.82B	10.45B
Net Income	11.35B	10.56B	9.20B	8.16B	5.88B	7.13B
Balance Sheet
Total Assets	0	61.55B	50.15B	46.38B	46.79B	40.56B
Cash, Cash Equivalents and Short-Term Investments	6.65B	6.65B	6.15B	4.60B	8.44B	3.28B
Total Debt	0	2.60B	474.20M	352.80M	356.30M	250.30M
Total Liabilities	-45.27B	16.28B	12.25B	10.71B	12.91B	7.91B
Stockholders Equity	45.27B	45.27B	37.90B	35.67B	33.88B	32.64B
Cash Flow
Free Cash Flow	1.10B	1.51B	8.39B	6.33B	6.17B	4.13B
Operating Cash Flow	2.84B	5.16B	11.57B	7.85B	7.92B	5.62B
Investing Cash Flow	-5.49B	-4.29B	-3.77B	653.90M	-5.60B	-741.00M
Financing Cash Flow	1.82B	-1.55B	-7.33B	-10.51B	-1.08B	-4.60B

Ajanta Pharma Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price3512.40

Price Trends

50DMA3492.66Positive

100DMA3415.76Positive

200DMA3146.02Positive

Market Momentum

MACD-20.57Negative

RSI57.03Neutral

STOCH77.12Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AJANTPHARM, the sentiment is Positive. The current price of 3512.40 is above the 20-day moving average (MA) of 3403.82, above the 50-day MA of 3492.66, and above the 200-day MA of 3146.02, indicating a bullish trend. The MACD of -20.57 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AJANTPHARM.

Ajanta Pharma Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AJANTPHARM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GLENMARK	79Outperform	INR 651.37B	36.08	―	0.22%	32.94%	138.54%
IN:AJANTPHARM	74Outperform	INR 438.91B	38.63	―	1.71%	25.01%	29.68%
IN:IPCALAB	71Outperform	INR 488.98B	37.34	―	0.31%	10.59%	68.21%
IN:EMCURE	61Neutral	INR 354.40B	35.09	―	0.19%	18.36%	35.60%
IN:WOCKPHARMA	57Neutral	INR 308.09B	75.56	―	―	18.37%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:AJANTPHARM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AJANTPHARM	Ajanta Pharma Limited	3512.40	1024.06	41.15%
IN:EMCURE	Emcure Pharmaceuticals Limited	1868.10	545.22	41.21%
IN:GLENMARK	Glenmark Pharmaceuticals Limited	2308.00	411.88	21.72%
IN:IPCALAB	IPCA Laboratories Limited	1927.70	622.33	47.68%
IN:WOCKPHARMA	Wockhardt Limited	1896.10	481.15	34.00%

Ajanta Pharma Limited Corporate Events

Ajanta Pharma Publishes June-Quarter Results in Mumbai Dailies for SEBI Compliance

Jul 31, 2026

Ajanta Pharma Limited has reported that its financial results for the quarter ended 30 June 2026 have been published in leading Mumbai newspapers, Business Standard and Navakal, to comply with Regulation 47 of the SEBI Listing Obligations and Disclos...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Ajanta Pharma Limited AI Stock Analysis