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Ajanta Pharma Limited (AJANTPHARM) Fair Value & Analysis

Healthcare · IN · Market cap ₹433B (≈ $4.6B) · ISIN INE031B01049

What is Ajanta Pharma Limited really worth?

AP Ajanta Pharma Limited AJANTPHARM · BSE
Price₹3,464
Fair Value₹1,312
Upside−62.1%
Quality64/100

A solid business, but trading 164% above our fair value of ₹1,312.

As of Aug 30, 2026, the fair value of Ajanta Pharma Limited is ₹1,312 per share against a price of ₹3,464, so the fair value sits 62% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Solidly profitable · 19.5% net margin
Low debt · generates free cash flow
Wide moat 78/100

Risks

!Expensive Growth (revenue 5y +13.4 %/yr)

For context

·0.81% dividend yield
Evidence: High Range ₹754.37 – ₹2,222

Fair value as of: Aug 30, 2026

From 24 valuation models · updated 7 days ago

Share price −0.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹2,222). The favourable scenario is already priced in.
  • The model range is unusually wide (₹754.37 to ₹2,222). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

₹3,713 ₹1,058 Fair Value ₹1,312 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ₹1,058 – ₹3,713 · fair‑value band ₹754.37 – ₹2,222 · the ₹3,464 price screens above the ₹1,312 fair value. Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Ajanta Pharma Limited (AJANTPHARM) currently trades at ₹3,464, while our model-based Fair Value estimate is ₹1,312, implying the stock looks roughly 164.0% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of ₹1,709 per share, and 0 of the 24 models we run sit above the ₹3,464 price. Bear case: the Asset-Based group reads lowest at ₹242.78, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Ajanta Pharma Limited generated revenue of ₹52.0B at a net margin of 19.5%. Revenue grew 20.0% year over year. It earns a return on equity of 24.4%. Net debt stands at ₹1.1B. Fundamentals as of Aug 30, 2026

Our scenario range runs from ₹754.37 (bear case) to ₹2,222 (bull case); at ₹3,464, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 50% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −45% fair-value upside, at −62%, AJANTPHARM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹36.23 per share, which is 2.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ₹191.04 ₹356.66 ₹664.64 76
Growth DCF ₹189.52 ₹341.94 ₹621.21 75
EPV ₹912.57 ₹1,072 ₹1,214 74
All 24 models by family
DCF Models
FCF DCF ₹191.04 ₹356.66 ₹664.64 76
Owner Earnings ₹970.99 ₹1,843 ₹3,466 73
5Y Revenue Exit ₹695.87 ₹1,399 ₹2,391 70
5Y EBITDA Exit ₹881.96 ₹1,788 ₹2,964 72
5Y P/E Exit ₹969.09 ₹1,971 ₹3,152 68
10Y Revenue Exit ₹501.35 ₹1,129 ₹2,163 63
10Y EBITDA Exit ₹661.57 ₹1,424 ₹2,661 65
10Y P/E Exit ₹721.05 ₹1,562 ₹2,825 61
Earnings-Based
Graham-Dodd ₹574.76 ₹2,810 ₹3,872 64
Lynch FV ₹754.37 ₹1,078 ₹1,401 61
PEG = 1.0 ₹754.37 ₹1,078 ₹1,401 57
EPV ₹912.57 ₹1,072 ₹1,214 74
Multiples
P/E Multiple ₹1,395 ₹1,860 ₹2,324 63
P/S Multiple ₹1,078 ₹1,437 ₹1,796 58
P/B Multiple ₹1,078 ₹1,437 ₹1,796 55
EV/EBIT ₹1,362 ₹1,813 ₹2,265 66
EV/EBITDA ₹1,269 ₹1,689 ₹2,109 67
EV/Revenue ₹917.15 ₹1,307 ₹1,696 53
Asset-Based
NCAV (Graham) ₹181.18 ₹242.78 ₹362.35 54
Growth DCF
Growth DCF ₹189.52 ₹341.94 ₹621.21 75
Rev-Margin DCF ₹695.87 ₹1,363 ₹2,238 70
Economic Profit
Residual Income ₹586.93 ₹787.41 ₹4,255 64
ROIC Compounder ₹1,050 ₹1,428 ₹1,923 71
Growth Earnings
Growth-Adj P/E ₹1,197 ₹1,709 ₹2,222 67

Widest divergence: Growth Earnings (₹1,709) versus Asset-Based (₹242.78). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 42.7
P/S ratio 8.34 P/E × margin
EPS (TTM) ₹81.11 price ÷ EPS = P/E 42.7
Dividend yield 0.8% payout 34.5%
Net margin 19.5% FY2025
Return on equity 24.4% TTM
More key figures
Profitability
Return on assets (EBIT) 20.2% avg 5y
Operating margin 24.6% TTM
Growth
Revenue (TTM) ₹52.0B TTM
Revenue growth (YoY) +20.0% 3y avg +13.0%
EPS growth (YoY) +17.9%
Balance sheet & cash flow
Free cash flow ₹1.6B FY2025
Net debt ₹1.1B FY2025 · ≈ 0.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 61 · Market factors (momentum, volatility) 79

Profitability 84
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 17
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 83
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Ajanta Pharma Limited, a specialty pharmaceutical formulation company, together with its subsidiaries, develops, manufactures, and markets speciality pharmaceutical finished dosages. The company markets and serves various therapeutic segments, such as cardiology, antidiabetic, ophthalmology, dermatology, pain management, and respiratory areas.

Full company description

Ajanta Pharma Limited, a specialty pharmaceutical formulation company, together with its subsidiaries, develops, manufactures, and markets speciality pharmaceutical finished dosages. The company markets and serves various therapeutic segments, such as cardiology, antidiabetic, ophthalmology, dermatology, pain management, and respiratory areas. It also provides tablets, capsules, injectables, inhalers, ointments, creams, and liquids. The company serves in India, Africa, rest of Asia, the United States, and internationally. Ajanta Pharma Limited was founded in 1973 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ajanta Pharma Limited reported revenue of ₹54.1B in FY2025 versus ₹33.4B in FY2021, a compound +12.8%/yr. Reported net income was ₹10.6B in FY2025, compounding +10.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹54.1B
Latest YoY
+16.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.4%
Avg. revenue growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.9%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.3% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+9.5%
Dividend yield0.8%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 9.5% vs 10Y 3.9%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30.6% (2020) → 24.5% (2025) · falling
Worst earnings drop23% (2018) · in INR
Revenue +12.8%/yr
FY21 ₹33.4B
FY22 ₹37.4B
FY23 ₹42.1B
FY24 ₹46.5B
FY25 ₹54.1B
Net income +10.3%/yr
FY21 ₹7.1B
FY22 ₹5.9B
FY23 ₹8.2B
FY24 ₹9.2B
FY25 ₹10.6B

AJANTPHARM screens 164% overvalued. Compare with Merck KGaA →

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Cite: Fair Value Calculator (2026). "Ajanta Pharma Limited Fair Value". https://www.fairvalue-calculator.com/stock/AJANTPHARM.BSE

Peer Group

Drug Manufacturers - Specialty & Generic · 609 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside −59% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 20% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth 20% · Top 25%
Dividend yield (TTM) 0.8% · Below median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 42.7× · Pricier than median
P/B 9.57× · Pricier than 75% of peers
P/S (TTM) 8.33× · Pricier than 75% of peers
P/FCF 2.8× · Pricier than median
EV/EBITDA 31.3× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Merck KGaA MRK €140.25 €106.48 −24%
Takeda Pharmaceutical Company TAK $18.03 $11.11 −38%
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 −52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,899 ₹989.50 −48%
Galderma Group GALD CHF 178.55 CHF 55.07 −69%
Haleon plc HLN $10.11 $7.64 −24%
Teva Pharmaceutical Industries Limited TEVA $36.05 $15.33 −57%
Sandoz Group SDZ CHF 70.66 CHF 39.21 −45%
Zoetis Inc ZTS $77.10 $104.88 +36%
Hansoh Pharmaceutical Group 3692 HK$35.12 HK$16.18 −54%

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Frequently asked questions

Is Ajanta Pharma Limited (AJANTPHARM) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ₹1,312 versus a price of ₹3,464, about −62% upside (overvalued).
What is the fair value of AJANTPHARM?
Our model-based fair value for Ajanta Pharma Limited is ₹1,312 (as of Aug 30, 2026), built from audited fundamentals. The current price: ₹3,464.
What is the quality score of AJANTPHARM?
Ajanta Pharma Limited has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ajanta Pharma Limited (AJANTPHARM)?
Our model-based price target is the fair value of ₹1,312 (as of Aug 30, 2026) from 24 valuation models. Cautious scenario ₹754.37, optimistic scenario ₹2,222. It is a calculation from audited fundamentals, not an analyst target.
What is the Ajanta Pharma Limited stock forecast for 2026?
Our models put fair value at ₹1,312, about −62% upside versus a price of ₹3,464 (overvalued). Cautious scenario ₹754.37, optimistic scenario ₹2,222. The calculation is refreshed regularly with new filings.
What is the revenue of Ajanta Pharma Limited (AJANTPHARM)?
Ajanta Pharma Limited reported trailing-twelve-month revenue of about ₹52.0B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of AJANTPHARM?
The net profit margin of Ajanta Pharma Limited is about 19.5%, meaning it keeps roughly 19.5% of revenue as net income. Based on the latest reported figures.
Does Ajanta Pharma Limited pay a dividend?
Ajanta Pharma Limited currently shows a dividend yield of about 0.81% relative to its recent price (as of Aug 30, 2026).
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