Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Weak dose from Ajanta Pharma - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jun 6, 2000

    Weak dose from Ajanta Pharma

    The number of Initial Public Offerings (IPOs) getting listed below their offer price is on the rise. The latest addition to this list is Ajanta Pharma Limited. The issue, which was offered to public at Rs 225, opened at Rs 190. The scrip reached an intra day high of Rs 230 and closed at Rs 180.

    Ajanta Pharma is engaged in the manufacture and marketing of pharmaceutical products both in India and abroad. Some of the strong brands in the Over The Counter (OTC) range are Thirty plus, Figurin, Pinkoo Gripe water, Livoplus, and Carofit.

    Rs m FY99
    Sales 1,398
    Total revenue 1,399
    Total expenditure 1,040
    Operating profit margin 26%
    Profit after tax 202
    Net profit margin 14.4%

    If one takes a look at the valuations in comparison to the valuation of stocks such as German Remedies the issue was tightly priced. The share was offered at a P/E multiple of 13.2 when the latter (which has a much superior product portfolio) quotes at a P/E of 17.4..

    (Rs) FY99
    Earnings per share 11.8
    P/E (on the offer price of Rs 225) 13.2
    P/E (on the current price of Rs 180) 10.5



    Equitymaster requests your view! Post a comment on "Weak dose from Ajanta Pharma". Click here!


    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms