Your questions need too much crystal gazing, which is not my forte.However, I will share some additional facts.

Improved operating margins in FY20, FY21: Due to benign raw material price and better price realization. In those days, supplies from China were disturbed and the end customer (Pharma Industry) was doing well. Those margins were outlier, at least for the near term. 21~22% range would be the new normal.

Valuation: Valuations of this business (12~15% growth + B2B processor + Miniscule pricing power + continuous capacity required for growth) are nearing that of Page Industries. It became too popular, inferring from the shareholders count of the last 3 Yrs.

Small to large cap shift: The real question shall be ‘Would I make sufficient money in this position? I will not buy at these prices. However, It’s a compounder that can grow at 1.5x of GDP for a long term.

Dear Sir,

Thank you for pointing out the issue with exact timing.

If i may request , Could you provide the a brief summary of the audio concoll ? It may help everyone in reading the script.

Steep raise of >50% in this month.

Also 3 months chart is present here

Ajanta Pharma Q1 highlights –

Breakdown of business revenues –

Branded business –

India – 32 pc
Asia – 26 pc
Africa – 15 pc
Total branded business – 73 pc

Generic business –

Africa Institutional – 5 pc
US – 22 pc

Total generic business – 27 pc

Total MRs across geographies – 4500 +
Presence in 30+ countries
Total products- 500 +

India business –

Cardiac- 39 pc
Opthal- 31 pc
Derma- 21 pc
Pain- 9 pc

Total – 10 brands with sales > 25 cr, 52 pc business from top 10 brands. 03 launches in Q1, 01 launch was first to Mkt

Last 4 yr’s India sales CAGR @ 14 pc. Only behind – JB Chen, Dr Reddy, Eris, Ipca, Aristo

Asia + Africa branded business –

Major presence in – Philippines, Middle East & CIS countries, Kenya, Tanzania, West Africa

4 Yr sales CAGR in Asia-12 pc
4 Yr sales CAGR in Africa-16 pc
Africa Institutional business FY 23 sales @ 190 cr, down @ 8 pc CAGR in last 4 yrs

US Generics-

52 ANDAs approved
6-8 filings/ yr
Last 4 yr sales CAGR @ 17 pc

R&D-

FY 23 spend at 237cr
Employing 850 scientists

Q1 financial outcomes-

Branded business sales @ 732 vs 688 cr

Generics sales @ 278 vs 258 cr

Total sales – 1010 vs 944 cr, up 7 pc
EBITDA – 271 vs 222 cr, up 22 pc
PAT – 208 vs 175 cr, up 20 pc

Announced a special dividend of Rs 25/share as it was company’s 50th yr since inception

Ajanta out-grew India Mkt by 400 bps in Q1

Gross margins in Q1 improved by 200 bps to 75 pc

Guiding for 25+/- 1 pc EBITDA margin guidance for FY 24. Also guiding for Mid teen sales growth

Capex guidance for FY 24 @ 200 cr ( including maintenance capex and new corporate building )

Capex to remain muted in FY 25-26

Don’t see any addition in Indian field force in near future

Expect significant ramp up in Africa branded sales wef Q2

A back of the Envelope calculation suggests an EBITDA of around 1050 cr and PAT of around 750 cr for FY 24

Disc: plan to take up a tracking position