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Ajanta Pharma Limited (AJANTPHARM) Fair Value & Analysis

Healthcare · IN · Market cap ₹399B

AP Ajanta Pharma Limited AJANTPHARM · NSE
Price₹3,465
Fair Value₹1,410
Upside-59.3%
Quality71/100
Expensive Growth
Solidly profitable · 19.4% net margin
Low debt · generates free cash flow
0.86% dividend yield
Mixed vs. peers (7/14)
Wide moat 82/100
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Evidence: High Range ₹710.74 – ₹2,086 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 2, 2026, revised from ₹1,666 to ₹1,410 (−15.4%) since Jun 29, 2026. Share price +3.5% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹2,086). The favourable scenario is already priced in.
  • The model range is unusually wide (₹710.74 to ₹2,086). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

₹3,575 ₹1,049 Fair Value ₹1,410 Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹1,049 – ₹3,575 · fair‑value band ₹710.74 – ₹2,086 · the ₹3,465 price screens above the ₹1,410 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Ajanta Pharma Limited (AJANTPHARM) currently trades at ₹3,465, while our model-based Fair Value estimate is ₹1,410, implying the stock looks roughly 59.3% overvalued today. We read business quality at 71/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ajanta Pharma Limited generated revenue of ₹54.5B at a net margin of 19.4%. Revenue grew 21.5% year over year. It earns a return on equity of 25.4%. Net debt stands at ₹1.6B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹710.74 (bear case) to ₹2,086 (bull case); at ₹3,465, the current price sits above that range. The share trades near 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 -49% fair-value upside, at -59%, AJANTPHARM screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹182.73 ₹344.99 ₹653.52 80
Residual Income ₹583.02 ₹775.13 ₹4,013 76
Rev-Margin DCF ₹608.46 ₹1,227 ₹2,074 74
All 26 models by family
DCF Models
FCF DCF ₹186.07 ₹356.93 ₹725.85 38
Owner Earnings ₹1,023 ₹2,067 ₹4,107 31
5Y Revenue Exit ₹608.46 ₹1,264 ₹2,214 39
5Y EBITDA Exit ₹843.27 ₹1,775 ₹3,019 41
5Y P/E Exit ₹909.51 ₹1,919 ₹3,150 38
10Y Revenue Exit ₹449.00 ₹1,047 ₹2,082 36
10Y EBITDA Exit ₹641.09 ₹1,442 ₹2,808 37
10Y P/E Exit ₹687.03 ₹1,553 ₹2,926 35
Earnings-Based
Graham-Dodd ₹574.76 ₹3,167 ₹4,395 54
Lynch FV ₹882.17 ₹1,260 ₹1,638 50
PEG = 1.0 ₹882.17 ₹1,260 ₹1,638 46
EPV ₹811.26 ₹952.95 ₹1,079 59
Dividend Discount
Gordon GGM ₹269.26 ₹587.83 ₹989.05 70
DDM Multi-Stage ₹269.26 ₹481.53 ₹612.62 61
Multiples
P/E Multiple ₹1,268 ₹1,690 ₹2,113 63
P/S Multiple ₹818.35 ₹1,091 ₹1,364 58
P/B Multiple ₹815.30 ₹1,087 ₹1,359 55
EV/EBIT ₹1,440 ₹1,917 ₹2,394 53
EV/EBITDA ₹1,177 ₹1,567 ₹1,957 54
EV/Revenue ₹772.18 ₹1,100 ₹1,427 43
Asset-Based
NCAV (Graham) ₹181.18 ₹242.78 ₹362.35 50
Growth DCF
Growth DCF ₹182.73 ₹344.99 ₹653.52 80
Rev-Margin DCF ₹608.46 ₹1,227 ₹2,074 74
Economic Profit
Residual Income ₹583.02 ₹775.13 ₹4,013 76
ROIC Compounder ₹958.81 ₹1,343 ₹1,864 72
Growth Earnings
Growth-Adj P/E ₹1,250 ₹1,785 ₹2,321 68

Widest divergence: Growth Earnings (₹1,785) versus Asset-Based (₹242.78). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹54.5B
Revenue growth (YoY) +21.5%
Net margin 19.4%
Return on equity 25.4%
Free cash flow ₹1.5B FY2026
P/E ratio 37.7
More key figures
Operating margin 23.2%
EPS (TTM) ₹84.60
Dividend yield 0.9%
EPS growth (YoY) +18.6%
Net debt ₹1.6B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 60 · Market factors (momentum, volatility) 79

Profitability 81
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 59
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 71
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 87
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.

About the company

Ajanta Pharma Limited, together with its subsidiaries, a pharmaceutical formulation company engages in the development, manufacture, and marketing of specialty pharmaceutical finished dosages.

Full company description

Ajanta Pharma Limited, together with its subsidiaries, a pharmaceutical formulation company engages in the development, manufacture, and marketing of specialty pharmaceutical finished dosages. The company offers chronic and acute therapies; branded generic products; and a range of dosage forms, including tablets, capsules, eye drops, dry powder suspension, injectables, inhalers, ointments, creams, and liquids. It also serves various therapeutic areas comprising cardiology, dermatology, ophthalmology, gynaecology, nephrology, and pain management. The company operates in India, Africa, 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

FY2022 – FY2026 · reported fiscal years

Ajanta Pharma Limited reported revenue of ₹54.5B in FY2026 versus ₹32.8B in FY2022, a compound +13.5%/yr. Reported net income was ₹10.6B in FY2026, compounding +10.3%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹54.5B
Latest YoY
+18.9%
Avg. growth/yr (3Y)
+13.7%
Avg. growth/yr (5Y)
+13.9%
Avg. growth/yr (21Y)
+17.1%
Revenue +13.5%/yr
FY22 ₹32.8B
FY23 ₹37.1B
FY24 ₹41.6B
FY25 ₹45.9B
FY26 ₹54.5B
Net income +10.3%/yr
FY22 ₹7.1B
FY23 ₹5.9B
FY24 ₹8.2B
FY25 ₹9.2B
FY26 ₹10.6B

AJANTPHARM screens 59% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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

Peer Group

Drug Manufacturers - Specialty & Generic · 650 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 71 · Top 25%
Fair Value upside −59% · Bottom 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 23% · Top 25%
Revenue growth 22% · Top 25%
Dividend yield (TTM) 0.9% · Below median

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

P/E (TTM) 37.7× · Pricier than median
P/B 8.81× · Pricier than 75% of peers
P/S (TTM) 7.31× · Pricier than 75% of peers
P/FCF 2.8× · Pricier than median
EV/EBITDA 26.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 9
FUTURE 100 · sector 20
PAST 100 · sector 20
HEALTH 100 · sector 97
DIVIDEND 17 · sector 33

VALUE 0: the price sits above our fair-value range.

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Ajanta Pharma Limited (AJANTPHARM) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹1,410 versus a price of ₹3,465, about −59% (overvalued).
What is the fair value of AJANTPHARM?
Our model-based fair value for Ajanta Pharma Limited is ₹1,410 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹3,465.
What is the quality score of AJANTPHARM?
Ajanta Pharma Limited has a Quality Score of 71/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Ajanta Pharma Limited (AJANTPHARM)?
Ajanta Pharma Limited reported trailing-twelve-month revenue of about ₹54.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of AJANTPHARM?
The net profit margin of Ajanta Pharma Limited is about 19.4%, meaning it keeps roughly 19.4% 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 0.86% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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