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Recommendation CMP (1 July 2011) Target Sector Stock Details BSE Code NSE Code Bloomberg Code Market Cap (Rs. cr) Free Float (%) 52- wk HI/Lo Avg. volume BSE (Quarterly) Face Value Dividend (FY11) Shares o/s (Crs) Relative Performance Ajanta Sensex 200 150 100 50 0 Jul-10 Oct-10 Jan-11 Apr-11 Ajanta SENSEX Jul-11 1Mth 10.1% 0.8%
st
Shareholding Pattern (%) Promoters Holding Institutional (Incl. FII) Corporate Bodies Public & others
Runjhun Jain Nagraj Research Analyst (+91 22 3926-8177) runjhun.jain@nirmalbang.com Net Sales Growth EBITDA Year (Rs Cr) % (Rs Cr)
FY10A FY11A FY12E FY13E
409.1 504.9 595.7 726.8 17.1% 23.4% 18.0% 22.0% 78.6 96.3 113.2 145.4
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120.0 100.0 80.0 60.0 40.0 20.0 0.0 FY08 Raw Materials Interest FY09 Employee Cost Tax FY10 Other Exps Profit After Tax FY11 Depreciation
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in days
Net Working Capital Sources of funds 100.0 80.0 60.0 40.0 20.0 0.0 FY08 Equity FY09 Debt FY10 FY11 Deferred Tax
Current Liab
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0.8 175.9
FY11
During FY11, the company has completed all its major capex work and need to spend only maintenance capex in future to run the engine growth. In addition it has repaid debt to the extent of Rs 47 cr funded by strong cash generation, which we believe, will continue in future also. Therefore, we expect debt/equity to improve further in future. Application of Funds 100.0 80.0 60.0 40.0 20.0 0.0 FY08 Fixed Assets Inventories FY09 FY10 FY11 Cash Loans & Adv
Investments Debtors
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25.0 20.0 15.0 10.0 5.0 0.0 FY08 FY09 ROCE FY10 ROE 16.2 14.1 16.2 12.5 18.4 13.8
22.2
16.6
FY11
The only way of finding the limits of the possible is by going beyond them into the impossible Arthur C. Clarke Unless you try to do something beyond what you have mastered, you will never grow C. R. Lawton
These words have been guiding force for Ajanta Pharma, which is performing and surpassing its own high standards year after year by SCALING NEW HEIGHTS.
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NOTE
Disclaimer This Document has been prepared by Nirmal Bang Research (Nirmal Bang Securities PVT LTD).The information, analysis and estimates contained herein are based on Nirmal Bang Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents Nirmal Bang Research opinion and is meant for general information only. Nirmal Bang Research, its directors, officers or employees shall not in anyway be responsible for the contents stated herein. Nirmal Bang Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities. Nirmal Bang Research, its affiliates and their employees may from time to time hold positions in securities referred to herein. Nirmal Bang Research or its affiliates may from time to time solicit from or perform investment banking or other services for any company mentioned in this document.
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