Ajanta Pharma Ltd (AJANTPHARM) — share price & stock analysis

Market cap

₹41,822 Cr

P/E

37.1×

ROE

27.1%

vs own 10-yr valuation

87th pctile

Book value / share

₹362

EPS (TTM)

₹90.2

10-yr median P/E

27.8×

Revenue (FY26)

₹5,453 Cr

Profit after tax (FY26)

₹1,056 Cr

Weinstein stage

Stage 2 (26 weeks)

Data as of

1 July 2026

3 of the 6 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROCE 35% — a high-quality engine; effectively no debt; margins mid-band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The price has run ahead of the profits

Since Mar 2016, the stock is up 260% while earnings per share grew 171%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 37.1× means the market is paying up — this is the expensive end of its own 10-year history (87th percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (27.8×).

The price is in a confirmed uptrend — 26 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 26 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹2,862 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 31 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits have grown in 9 of the last 12 years — this is a compounding machine

Over 12 years, sales went from ₹1,208 Cr to ₹5,453 Cr (about 13% a year), and profit from ₹234 Cr to ₹1,056 Cr.revenuenet_profit

Margins gave up 3 points along the way — growth bought at a price.operating_profit

Sales jumped 22% last quarter — growth every single quarter for over 2 years

Mar 26 sales were ₹1,422 Cr, up 22% on the same quarter last year.revenue

That makes 10 quarters of growth in a row — this is a trend, not a blip.revenue

Margins are compressing — 25% → 23% in a year

Of every ₹100 of sales, the company keeps ₹23.4 as operating profit (a year ago it kept ₹25.4).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 21.6% in FY23 and has been rebuilt to 27.5% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (76% → 79%), so the change came from running costs — overheads are growing faster than sales.gpm_pctopm_pct

Profit grew 19% — mostly from selling more

Mar 26 profit after tax was ₹267 Cr, up 19% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

Cash has tracked profit for years — but slipped last year

Over the last 5 profitable years, the business reported ₹4,093 Cr of profit and collected ₹3,825 Cr of operating cash — about 93% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹529 Cr against ₹1,056 Cr of reported profit — about 50%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 124 days to pay, up from 93. Profit booked, cash pending.debtor_days

The cash cycle is stable

One rupee now takes about 246 days to go out the door as materials and come back as collected cash.cash_conversion_cycle

The biggest mover: customers taking longer to pay (93 → 124 days).debtor_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹279 Cr (FY14) to ₹1,867 Cr, with another ₹258 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹741 Cr) fits inside the operating cash the business generated (₹2,471 Cr).investing_cash_flowoperating_cash_flow

Almost no debt — this company cannot be killed by a bad year

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹6 — total borrowings have grown from ₹130 Cr to ₹260 Cr over the window.borrowings

Every ₹100 kept in the business now earns ₹35 — and the number is rising

Return on capital employed is 35.0% (a year ago: 32.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

The owners aren’t moving

Promoters hold 66.3%, essentially unchanged. Foreign funds own 8.3%, domestic funds 18.4%.promoters_pctfiis_pctdiis_pct

Worth studying deeper — with eyes open

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: sales rising (₹1,170 Cr → ₹1,422 Cr).revenue

Biggest worry: debt moving the wrong way (0.01× → 0.06×).borrowings

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data