Ajanta Pharma (AJP IN) – Event Update – Strategic fit – Adds Semaglutide to RoW portfolio – BUY
Published on 24 Dec 2025
Ajanta Pharma (AJP IN) signs an in-licensing agreement with Biocon for marketing semaglutide in 26 countries across RoW markets. Given that AJP will be involved in the registration process to get approvals across these markets, we expect it to generate healthy margins. Further, AJP’s strong franchise and field force across these markets will enable it to garner higher market share. We expect semaglutide to provide additional ~Rs2bn of sales for AJP with healthy margins in FY28E. Strong annual free cash flow of Rs8–10bn further supports sustained investments and potential inorganic opportunities, reinforcing medium-term growth visibility.
Overall, we expect EBITDA/PAT CAGR of 17%/ 14% over FY25-28E with healthy RoE/RoCE of 28.1%/35.5% in FY27E. At CMP, AJP is trading at 24x P/E and 17.1x EV/EBITDA as of Sep’27E. We value AJP at 30x P/E as of Sep’27E EPS based on its ability to generate higher RoE/RoCE compared to peers and strong exposure to BGx markets. Maintain ‘BUY’ rating with TP of Rs3,200/share.
