AI Summary
✦ ClarthaAjanta Pharma is a pharmaceutical formulation company selling specialty finished dosages across India, Africa, Asia, and the United States. Chronic and acute therapies, branded generics, and dosage forms including tablets, injectables, inhalers, and eye drops drive revenue. Cardiology, dermatology, ophthalmology, and gynaecology are key therapeutic areas. Q1 profit reached ₹334 crore, supporting 17.9% revenue growth and improving margins. ROE is unavailable, while debt-to-equity of 5.75 indicates substantial leverage that can amplify reported returns and financial risk. Profit growth of 14.7% trails revenue growth, despite the improving margin trend. At 38.5 times earnings, the shares appear rich versus the company’s profit growth rate. Investors must weigh positive sentiment and international specialty-formulation opportunities against leverage and valuation risk.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 14 analysts
Fundamentals
Fundamentals institutional score is 85 using growth durability 85.2.
Valuation
Valuation institutional score is 13 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 65 using mean target upside 7.3%; dispersion penalty 10.9; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 82 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 1 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. fundamentals and analyst consensus provide support, while valuation and market sentiment remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 36.7% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +2.16). Confidence: 82%.
Live forward EPS implies next-12-month EPS of ₹116.59. Applying the stock's normalized valuation corridor produces a fair range of ₹2,828.47 to ₹3,609.63, with base value near ₹3,280.84 (-6.4% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹116.59
Forward P/E
30.1x
Base Fair Value
₹3,280.84
Fair Range
₹2,828.47 - ₹3,609.63
Upside To Base
-6.4%
Estimate Source
Live forward EPS
Growth Estimate
+30.8%
5Y Average
22.63
Current
38.46
Overvalued
30.96
Undervalued
24.26
5Y Average
16.04
Current
27.39
Overvalued
20.80
Undervalued
9.98
5Y Average
4.44
Current
7.58
Overvalued
5.76
Undervalued
2.76
Peers & Comparison
Sector: Health Care · Theme: Pharmaceuticals
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
CIPLA LTD CIPLAPharmaceuticals | +3.5% | 12.0% | 35.2x Undervalued | -25% vs avg | -2.7% |
TORRENT PHARMACEUTICALS L TORNTPHARMPharmaceuticals | +54.8% | 13.9% | 78.7x Premium | +67% vs avg | +36.2% |
LUPIN LIMITED LUPINPharmaceuticals | +32.0% | 18.5% | 19.0x Undervalued | -60% vs avg | +21.5% |
GLENMARK PHARMACEUTICALS GLENMARKPharmaceuticals | +23.1% | 10.1% | 35.4x Undervalued | -25% vs avg | +11.2% |
ABBOTT INDIA LIMITED ABBOTINDIAPharmaceuticals | +6.5% | 22.4% | 37.8x Undervalued | -20% vs avg | -15.6% |
MANKIND PHARMA LIMITED MANKINDPharmaceuticals | +12.9% | 13.9% | 49.4x Fair | +5% vs avg | +0.8% |
LAURUS LABS LIMITED LAURUSLABSPharmaceuticals | +29.1% | 15.0% | 91.4x Premium | +94% vs avg | +121.8% |
DR. REDDY S LABORATORIES DRREDDYPharmaceuticals | -5.6% | 10.0% | 29.2x Undervalued | -38% vs avg | -3.9% |
AJANTA PHARMA LIMITED trades at a discount (38.6x vs peer avg 47.0x), suggesting potential undervaluation relative to the Pharmaceuticals cohort. Peers include CIPLA LTD, TORRENT PHARMACEUTICALS L, LUPIN LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹1.49K CrJun 2026Latest net profit
₹315 CrJun 2026Latest EPS
₹25.25Jun 2026Net margin
27.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 1,015 | 945 | 1,085 | 926 | 1,077 | 1,129 | 1,102 | 1,014 | 1,209 | 1,220 | 1,207 | 1,211 | 1,489 |
| Expenses + | 738 | 672 | 758 | 699 | 761 | 826 | 766 | 764 | 879 | 931 | 866 | 972 | 1,092 |
| Operating Profit | 277 | 274 | 327 | 227 | 316 | 303 | 336 | 250 | 329 | 290 | 341 | 238 | 397 |
| OPM % | 27% | 29% | 30% | 25% | 29% | 27% | 31% | 25% | 27% | 24% | 28% | 20% | 27% |
| Other Income + | 31 | 52 | 14 | 34 | 28 | 40 | 33 | 18 | 41 | 75 | 26 | 63 | 71 |
| Interest | 1 | 2 | 2 | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 2 | -1 | 1 |
| Depreciation | 32 | 33 | 33 | 33 | 33 | 33 | 35 | 39 | 40 | 42 | 42 | 44 | 43 |
| Profit before tax | 275 | 290 | 305 | 226 | 311 | 309 | 332 | 228 | 329 | 322 | 322 | 258 | 423 |
| Tax % | 23% | 27% | 28% | 28% | 24% | 24% | 24% | 15% | 22% | 22% | 24% | 23% | 26% |
| Net Profit + | 212 | 212 | 220 | 163 | 236 | 235 | 252 | 193 | 255 | 250 | 245 | 197 | 315 |
| EPS in Rs | 16.55 | 16.57 | 17.18 | 12.70 | 18.90 | 18.81 | 20.21 | 15.49 | 20.41 | 19.97 | 19.61 | 15.79 | 25.25 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Earnings Call Transcript