Ajanta Pharma

I think Ajanta unlike Alembic or Torrent is a fairly predictable business.

Management has indicated that co would grow between 15-20% for fy 16 and going by half yearly figures it seems on track. It could have eps figures between 42-46 by my estimates. (It has done 20.89 per share for half year ended sep 2015 on consolidated basis as per their results available on bse.)

Also looking at the balance sheet statement given with q2 results co is net cash. (no debt)

The good news could be recent spate of approvals in namenda, and monteleukast tablets. It earlier also had a couple of approvals (I think risperidone was there earlier). Now over next year or two I expect the US business to become the growth engine once the expanded capacities come into place and some more USFDA approvals come through. Till that time growth may remain in the 20% or thereabouts range.

What I like about Ajanta is its clean balance sheet, calibrated growth plans and management smarts.

I think as a great business it has proven itself over past few years.

disc: Had exited above 1600 plus (no problems with company as such but it seemed overvalued) levels to convert into torrent pharma and waiting to get into ajanta again. Currently no position.