Ajanta Pharmaceuticals Ltd.
ISIN: INE031B01049 • Market Cap: ₹46,287 Cr
The 5-Pillar Quality Audit for Ajanta Pharmaceuticals Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (25.4%), Return on Capital Employed (30.6%), and equity compounding (23.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.05 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (11.1%) and 3Y PAT CAGR (11.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 40.79 vs PEG of 3.71 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 63.5%, backed by 29.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.6%)
Ajanta Pharmaceuticals Ltd. generates exceptional return on capital employed of 30.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 23.3%)
Shareholder equity compounds at a healthy 23.3%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.05)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (29.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 29.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking AJANTPHARM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 77/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare AJANTPHARM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ajanta Pharmaceuticals Ltd. (AJANTPHARM)Current | 77/100 | ₹46,287 Cr | 40.79 | 30.6% | 0.05 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Ajanta Pharmaceuticals Ltd.
Q:What is the 5-Pillar Fundamental Score for Ajanta Pharmaceuticals Ltd. (AJANTPHARM)?
Ajanta Pharmaceuticals Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (96/100), Financial Health (81/100), Growth (70/100), Valuation (48/100), and Ownership Quality (78/100).
Q:Is AJANTPHARM fundamentally strong for long-term investment?
Yes, AJANTPHARM exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 23.3% and a debt-to-equity ratio of 0.05.
Q:Does AJANTPHARM pass the Coffee Can Investing filter?
Yes! AJANTPHARM satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does AJANTPHARM compare against other Healthcare peers?
Within India's Healthcare sector, AJANTPHARM trades at a P/E of 40.79 and generates an ROCE of 30.6%. Compare its 5-Pillar score of 77/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.