₹3460.1
-1.84% today
· 30d +0.51%
as of 2026-09-04
Price · Daily Candles
“Ajanta Pharma's Q4 Earnings Soar, but DIIs Trim Stakes Amidst Strong Sales Momentum.”
Ajanta Pharma reported a robust Q4 2026 with revenue growing 21.47% YoY to ₹1422 Cr and net profit up 18.4% YoY to ₹267 Cr. The company exhibits strong profitability with a ROCE of 32.0% and a profit margin of 19.37%. However, ML predictions flag significant potential free cash flow compression, with FCF forecasted to be negative by year 3.
BULL CASE
+Q4 2026 revenue increased by 21.47% YoY to ₹1422 Cr, demonstrating strong top-line growth.
+Net profit in Q4 2026 rose by 18.4% YoY to ₹267 Cr, indicating healthy earnings expansion.
+The company boasts a high Return on Capital Employed (ROCE) of 32.0%, outperforming peers like SUNPHARMA (22.46%) and DIVISLAB (21.47%).
+Annual net profit CAGR for the last 3 years stands at 21.55%, showcasing consistent growth.
+The stock has delivered strong price performance, with 1-year returns of 30.61% and a current price just 4.47% off its 52-week high.
BEAR CASE
−DIIs reduced their stake by 0.21% QoQ, bringing their holding down to 18.37% as of March 2026.
−Despite strong current FCF of ₹164 Cr, ML models predict significant FCF compression, with H1 FCF down -26.48% and H3 down -30.11% of market cap.
−The stock trades at a Price-to-Earnings (PE) ratio of 39.58, which is higher than some peers like CIPLA (30.47) and DRREDDY (26.84).
−Its beta of 0.24, while indicating low volatility, might imply less sensitivity to broad market upward movements.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹1626 Cr
+24.82% YoY
NET PROFIT
₹334 Cr
+30.89% YoY
OPM
29.14%
+0.72pp YoY
EPS
₹26.75
PE 39.58
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-21.9%, h2=-25.3%, h3=-24.7% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
Ajanta Pharma's 39.58 P/E and 32.0% ROCE positions it as a higher-ROCE player compared to peers like SUNPHARMA (PE 40.88, ROCE 22.46%) and DIVISLAB (PE 70.09, ROCE 21.47%), despite a slightly lower PE than the most expensive in the sector.
PEERPEROCE %
AJANTPHARM39.5832.0
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
76
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
90
Valuation
FAIR
40
Growth
STRONG
71
Profitability
HIGH
95
Technicals
NEUTRAL
67
Risk
LOW
90
Key Stats
TTM PE
39.58
P/B
9.21
52W HIGH
₹3796.0
OFF HIGH
-8.85%
DIV YIELD
1.67%
MKT CAP
₹43209 Cr
◉ Active Signals
MACDNeutral-26.5569
RSI(14)Neutral43.16
Street Consensus
14 analysts₹3303.29
mean target
Low ₹2605.0Now ₹3460.1High ₹3829.0
⧉ Strategy Fit 🔒