Ajanta Pharma or Torrent Pharma

Guys - I am holding both Ajanta Pharma and Torrent Pharma and want to consolidate - any idea on which is a better one? My analysis says Ajanta is better, but wanted your views as well.

Cheers,
Bhavesh.

 

Thanks Meenakshi. This is very helpful.

My thoughts are based on the below facts:

1. Ajanta has Lower Equity capital and higher % of Free reserves as compared with Torrent

2. Ajanta has Lower Debt levels as compared with Torrent.

3. As mentioned by you, Ajanta has grown at a faster pace as compared with Torrent.

4. Ajanta has plans to enter into US market and they already have 23 ANDA pending approval.

5. Ajanta has a higher ROE, Return on Assets and Return on Capital for the last 3 / 5 years as compared wiht Torrent.

6. Ajanta has historically has a better history of introducing new products as compared wiht Torrent.

I agree with your point that a higher PE and any tapering of growth will have a significant impact on the price.

Thanks,
Bhavesh.