Omkar’s Portfolio Analysis and Discussion

Ajanta pharma keeps repeating sensible capital allocation

1. Invest in branded generic business more and more. Focussing on what they have rather than announcing fancy new projects
2. Careful about US generic investments. No more capex in US generic focussed manufacturing. Careful consideration to US generic R&D. Calibrating US generic pipeline
3. Return whatever left to shareholder via buyback or dividend
4. No flashy future targets
5. Maintaining ROEs even in difficult quarter

All these points give me conviction to hold even at very high allocation despite having 0 knowledge about brands/ future launches/ market size etc.

My belief is if they keep repeating above steps for next 10 years, it will create descent wealth to shareholders.