In its latest research report dated May 2, 2025, Choice Equity Broking has maintained a bullish stance on Ajanta Pharma Ltd., recommending a BUY on the stock with a revised target price of ₹3,180. The previous target was ₹3,667, issued during Q3FY25.
Ajanta Pharma (NSE: AJP) is currently navigating through a strategic investment phase aimed at strengthening its global footprint and diversifying across therapeutic segments. The brokerage highlighted that increased spending on marketing and talent acquisition may restrict any significant improvement in EBITDA margins until after FY27E.
Despite revising FY26E and FY27E earnings estimates downward by 6.2% and 6.1% respectively, the firm maintains confidence in Ajanta Pharma’s long-term fundamentals. The target price of ₹3,180 is based on an average of PE-based and DCF-based valuation methods. Under the PE method, a 30x multiple has been applied to FY27E EPS, consistent with peer companies in the generics space.
Investment Outlook:
“Ajanta Pharma’s disciplined growth strategy and future readiness position it well for sustainable gains post FY27. While near-term pressures remain, the long-term trajectory appears intact,” the report stated.
Disclaimer:
The views and investment recommendations expressed by Choice Equity Broking are their own and do not represent those of Jobaaj.com or its editorial team. We advise investors to consult with certified financial advisors before making any investment decisions.
Source:
Moneycontrol.com
