31 July 2020
1QFY21 Results Update | Sector: Healthcare
Ajanta Pharma
Buy
Estimate change
TP change
Rating change
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CMP: INR1,512
TP: INR1,815 (+20%)
US/Asia businesses drive superior performance
Lower opex further supports profitability improvement
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
AJP IN
88
132 / 1.7
1578 / 840
-1/43/71
223
Ajanta Pharma (AJP) delivered superior 1QFY21 performance in the US/Asia.
This was supported by controlled costs, driving better operating leverage.
With capex in the final phase and strong product pipeline in key markets, we
believe AJP is well placed to garner healthy earnings over the next 2-3 years.
We have increased our EPS estimate for FY21/FY22E by 5.7%/3.4% to factor
in the benefit of lower opex and improving growth prospects in the branded
generic segment with the lockdown easing. We value AJP at 23x 12M
forward earnings to arrive at price target of INR1,815 (from INR1,700). We
remain positive on AJP’s ANDA pipeline in the US, consistency in compliance
and ability to outperform in the branded generics segment. Maintain
Buy.
1QFY21 revenues were up 9.2% YoY to INR6.7b (v/s est. INR6.4b), led by
growth in exports (19% YoY to INR4.8b), US generic sales (46% YoY to
INR1.5b; 22% of sales) and Asia sales (27.8% YoY to INR1.6b; 24% of sales).
Africa sales dipped 2% YoY to INR1.7b (25% of sales), led by 23% YoY decline
in Institutional sales to INR620m. Domestic formulation (DF) sales declined
10% YoY to INR1.78b (~26% of sales).
Gross Margin (GM) expanded 40bp YoY to 77.1%.
EBITDA margin expanded at higher rate of 590bp YoY with superior product
mix and controlled opex. As % of sales, other expense was down 650bp YoY,
which was marginally off-set by 100bp rise in employee cost.
EBITDA grew 32.6% YoY to INR2.2b (v/s est. INR1.5b).
R&D expenses stood at INR310m (5% of sales and down 190bp YoY).
PAT grew at a lower rate of 29% YoY to INR1.5b (v/s est. INR1b) due to
higher depreciation and tax rate for the quarter.
AJP has guided for flat FY21 revenue compared to FY20.
The company has received 5 ANDA approvals by the USFDA in 1QFY21. It has
guided to file ~10-12 ANDAs and intends to launch 6-7 ANDAs in FY21. It had
19 ANDAs pending approval as at end-1QFY21.
AJP has 3,000 MRs as on date in the domestic formulation (DF) segment.
The Ophthalmic block in Guwahati would be commercialized in 2QFY21.
It has guided for effective tax rate of 27-28% for FY21.
Over FY20-22E, we expect 18% earnings CAGR led by 19% sales CAGR in the
US and 7% sales CAGR in branded generics with 200bp margin expansion.
We have raised our EPS estimate by 5.7%/3.4% for FY21/FY22E to factor in
lower operating costs and better product mix. Our TP has been revised to
INR1,815 (from INR1,700 earlier), valuing AJP at 23x 12M forward earnings.
We remain positive on AJP on its new launches, rising share in key markets
of the US/India/Asia/Africa and improved operating leverage. Re-iterate
Buy.
Revenue growth and steady opex leads strong margin expansion
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
25.9 27.8 31.8
Sales
7.0
8.6
9.2
EBITDA
4.5
5.7
6.3
Adj. PAT
EBIT Margin (%)
23.3 26.6 25.1
Cons. Adj. EPS (INR) 51.1 64.0 71.7
15.1 25.2 12.0
EPS Gr. (%)
293.8 345.4 399.3
BV/Sh. (INR)
Ratios
Net D:E
-0.1
-0.1
-0.2
18.7 20.0 19.3
RoE (%)
19.0 20.3 19.4
RoCE (%)
Payout (%)
16.3 19.5 24.7
Valuations
29.5 23.6 21.0
P/E (x)
EV/EBITDA (x)
18.8 15.2 13.9
0.6
0.8
1.2
Div. Yield (%)
FCF Yield (%)
0.5
1.4
2.3
5.1
4.7
4.0
EV/Sales (x)
Highlights from management commentary
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
70.5
70.5
70.5
11.8
11.4
10.4
8.2
8.9
9.5
9.5
9.2
9.6
Valuation and view
FII Includes depository receipts
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Tushar Manudhane - Research Analyst
(Tushar.Manudhane@MotilalOswal.com)
Research Analyst: Hitakshi Chandrani
(Hitakshi.Chandrani@motilaloswal.com);
Bharat Hegde
(Bharat.Hegde@motilaloswal.com)
 Motilal Oswal Financial Services
Ajanta Pharma
Consol. - Quarterly perf.
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Depreciation
EBIT
YoY Change (%)
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
6,119
19.8
4,436
1,684
1.6
228
1,456
-2.0
18
76
1,515
0
1,515
368
24.3
0
1,146
1,146
8.4
18.7
(INR M)
FY20
2Q
3Q
6,428 6,512
18.1
34.2
4,651 4,652
1,776 1,860
6.9
61.3
233
236
1,543 1,624
3.8
68.0
49
16
132
146
1,626 1,754
11
3
1,616 1,751
452
676
28.0
38.6
0
0
1,164 1,076
1,171 1,078
-6.6
48.3
18.2
16.5
4Q
6,820
32.4
5,156
1,663
30.9
260
1,403
29.5
36
167
1,534
-225
1,759
467
26.6
0
1,292
1,126
26.7
16.5
1Q
6,682
9.2
4,450
2,232
32.6
280
1,952
34.1
16
131
2,067
0
2,067
589
28.5
0
1,478
1,478
28.9
22.1
FY21E
2QE
3QE
7,014
7,197
9.1
10.5
4,882
5,045
2,132
2,152
20.0
15.7
285
295
1,847
1,857
20
130
1,957
0
1,957
538
27.5
0
1,419
1,419
21.1
20.2
4QE
6,922
1.5
4,872
2,051
23.3
311
1,740
24.0
35
119
1,824
0
1,824
457
25.1
0
1,367
1,367
21.3
19.7
FY20
25,879
25.9
18,895
6,983
21.6
957
6,026
20.0
119
522
6,429
-211
6,640
1,963
29.6
0
4,677
4,522
15.1
17.5
FY21E
27,815
7.5
19,248
8,567
22.7
1,171
7,396
22.7
96
501
7,800
0
7,800
2,137
27.4
0
5,663
5,663
25.2
20.4
1QE
6,362
4.0
4,848
1,514
-10.1
275
1,239
-14.9
29
150
1,360
0
1,360
354
26.0
0
1,006
1,006
-12.2
15.8
vs Est
(%)
5.0
-8.2
47.4
1.9
57.5
-12.5
52.0
52.0
66.6
46.8
46.8
20
25
120
1,952
0
1,952
552
28.3
0
1,399
1,399
29.9
19.4
14
Key performance Indicators (Consol.)
Y/E March
INRm
1Q
Domestic formulations
1,940
YoY Change (%)
9.0
Asia
1,260
YoY Change (%)
(2.3)
Africa
1,730
YoY Change (%)
32.1
US
1,020
YoY Change (%)
67.2
Cost Break-up
RM Cost (% of Sales)
23.3
Staff Cost (% of Sales)
19.3
R&D Expenses (% of Sales)
6.5
Other Cost (% of Sales)
29.9
Gross Margins(%)
76.7
EBITDA Margins(%)
27.5
EBIT Margins(%)
23.8
FY20
2Q
2,030
13.4
1,810
34.1
1,540
13.2
1,110
40.5
25.9
18.3
6.2
28.2
74.1
27.6
24.0
3Q
1,950
12.1
1,580
30.6
1,290
13.2
1,590
140.9
26.0
18.5
5.4
27.0
74.0
28.6
24.9
4QE
1,770
11.3
2,090
46.2
1,380
14.0
1,430
85.7
26.0
19.0
7.2
30.6
74.0
24.4
20.6
1Q
1,740
(10.3)
1,610
27.8
1,700
(1.7)
1,490
30.0
22.9
20.3
4.6
23.4
77.1
33.4
29.2
FY21E
2QE
2,040
0.5
1,665
(8.0)
1,617
5.0
1,521
37.0
24.5
20.1
0.0
25.0
75.5
30.4
26.3
3QE
2,079
6.6
1,659
5.0
1,677
30.0
1,590
0.0
24.2
20.4
0.0
25.5
75.8
29.9
25.8
4QE
2,133
9.9
1,796
42.5
1,355
(21.7)
1,706
67.2
24.3
20.0
0.0
26.1
75.7
29.6
25.1
FY20
7,690
11.6
6,730
27.2
5,930
17.9
5,160
82.3
25.3
18.8
6.3
28.9
74.7
27.0
23.3
FY21E
7,991
3.9
6,730
0.0
6,349
7.1
6,306
22.2
24.0
20.2
6.5
25.0
76.0
30.8
26.6
31 July 2020
2
 Motilal Oswal Financial Services
Ajanta Pharma
Key exhibits
Exhibit 1: Domestic branded segment declined 15% YoY in
1QFY21
Domestic Branded Formulation (INR b)
27.4
0.6
7.7
4.3
7.0
6.4
6.0
9.5
-15.2
1.7
1.7
1.7
1.5
1.8
1.8
1.8
1.6
1.6
410
500
450
400
400
400
350
490
YoY (%)
8.0
9.2
Exhibit 2: R&D spend was down 190bp YoY during 1QFY21
R&D expense (INRm)
9.3
7.8
6.5
6.2
7.2
5.4
4.6
as a % of sales
310
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Lower institutional sales drag Africa sales
Africa Sales (INR b)
32.1
13.2
-22.0
-37.6 -36.7
1.4
1.1
-29.7
13.2
14.0
-1.7
YoY (%)
Exhibit 4: Asia sales grew 28% YoY
Asia Sales (INR b)
34.4
29.8
8.3
-24.8
-2.3
YoY (%)
34.1
46.2
30.6
27.8
1.3
1.2
1.7
1.5
1.3
1.4
1.7
1.3
1.4
1.2
1.4
1.3
1.8
1.6
2.1
1.6
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Gross margin expanded 40bp YoY…
83.5
82.4
79.8
Gross Margin (%)
79.5
76.7
74.1
74.0
74.0
77.1
Exhibit 6: …while EBITDA margin was better at 590bp YoY
32.4
EBITDA Margin (%)
30.5
23.8
24.7
27.5
27.6
28.6
24.4
33.4
Source: MOFSL, Company
Source: MOFSL, Company
31 July 2020
3
 Motilal Oswal Financial Services
Ajanta Pharma
Valuation and view
Branded generics – Mixed bag for the quarter; Outlook Positive
Tracking well in US with healthy ANDA pipeline and minimal regulatory risk
In the branded formulation segment, AJP witnessed 15% YoY decline in India,
while it delivered 27.8%/17.4% YoY growth in Asia/Africa in 1QFY21.
The COVID led slowdown in Ophthalmology and Dermatology segments
impacted the branded segment in India. Improved patient-doctor connect and
enhanced marketing efforts by MRs is expected to revive growth in the branded
DF segment in the near-to-medium term. Considering a dent in FY21 growth, we
expect 6% CAGR to INR8b in the branded DF segment over FY20-22E.
AJP has strong pipeline of registration in both Asia/Africa branded segment. In
addition, its own MR force continues to build healthy brand recall with doctors.
However, considering the high base of FY20, we expect 6% CAGR in Asia sales to
INR7.5b over FY20-22. We expect Africa branded segment to deliver better 12%
CAGR over FY20-22E to INR4.3b owing to increased offerings and better reach.
From USD2.7m in FY16, AJP has reached USD70m in FY20 and tracked USD20m
for 1QFY21. AJP’s US sales grew 46% YoY due to increased traction in existing
products.
With 19 ANDAs pending approval, the company has an intention to file 10-12
ANDAs annually. Thus, we believe AJP is on track to build strong product
pipeline for future growth. Considering 6-7 launches in FY21, we expect AJP to
garner 20% CAGR in US sales over FY20-22E to INR7.3b in this segment.
Valuation and view
Over FY20-22E, we expect 18% earnings CAGR led by 19% sales CAGR in the US
and 7% sales CAGR in branded generics with 200bp margin expansion.
We have raised our EPS estimate by 5.7%/3.4% for FY21/FY22E to factor in
lower operating costs and better product mix. Our TP has been revised to
INR1,815 (from INR1,700 earlier), valuing AJP at 23x 12M forward earnings.
We remain positive on AJP on its new launches, rising share in key markets of
the US/India/Asia/Africa and improved operating leverage. Re-iterate
Buy.
Exhibit 8: P/B chart
Exhibit 7: P/E chart
P/E (x)
Avg (x)
+1SD
Max (x)
Min (x)
-1SD
P/B (x)
Min (x)
12.0
9.0
Avg (x)
+1SD
Max (x)
-1SD
40.0
30.0
20.0
10.0
0.0
37.4
11.1
7.4
4.6
1.8
0.8
28.3
17.9
7.4
2.9
24.8
6.0
3.0
0.0
4.2
Source: MOFSL, Company, Bloomberg
Source: MOFSL, Company, Bloomberg
31 July 2020
4
 Motilal Oswal Financial Services
Ajanta Pharma
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
R&D expenses
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY14
12,160
29.8
3,455
1,570
530
2,918
8,472
69.7
3,688
30.3
439
3,249
87
137
3,299
0
3,299
960
29.1
2,339
2,339
108.6
19.2
FY15
14,852
22.1
3,654
2,006
660
3,480
9,800
66.0
5,052
34.0
516
4,536
59
168
4,645
-85
4,560
1,462
32.0
3,099
3,156
34.9
21.3
FY16
17,494
17.8
4,138
2,566
1,065
3,854
11,623
66.4
5,871
33.6
444
5,426
49
212
5,589
0
5,589
1,433
25.6
4,156
4,156
31.7
23.8
FY17
20,016
14.4
4,146
2,954
1,530
4,497
13,126
65.6
6,890
34.4
612
6,278
35
239
6,482
0
6,482
1,413
21.8
5,068
5,068
21.9
25.3
FY18
21,309
6.5
4,064
3,765
1,860
5,036
14,725
69.1
6,584
30.9
596
5,988
4
242
6,226
0
6,226
1,539
24.7
4,686
4,686
-7.5
22.0
FY19
20,554
-3.5
3,835
4,307
1,760
4,908
14,809
72.1
5,744
27.9
721
5,024
12
211
5,223
80
5,143
1,273
24.8
3,870
3,930
-16.1
19.1
FY20
25,879
25.9
6,557
4,856
1,640
5,842
18,895
73.0
6,983
27.0
957
6,026
119
522
6,429
211
6,640
1,963
29.6
4,677
4,522
15.1
17.5
FY21E
27,815
7.5
6,676
5,619
1,808
5,146
19,248
69.2
8,567
30.8
1,171
7,396
96
501
7,800
0
7,800
2,137
27.4
5,663
5,663
25.2
20.4
(INR M)
FY22E
31,836
14.5
8,023
5,985
2,229
6,367
22,603
71.0
9,232
29.0
1,237
7,996
81
541
8,455
0
8,455
2,114
25.0
6,342
6,342
12.0
19.9
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY14
177
5,756
5,933
1,305
230
7,468
4,903
2,109
2,794
936
635
5,130
1,554
2,022
604
949
2,026
1,245
325
455
3,104
7,468
FY15
177
8,234
8,411
724
152
9,286
5,499
2,618
2,881
1,702
595
6,286
1,590
2,588
1,368
740
2,177
1,298
188
691
4,108
9,286
FY16
177
11,732
11,909
814
107
12,829
7,157
2,650
4,507
2,398
860
7,028
2,046
3,724
434
825
1,965
1,650
176
139
5,063
12,829
FY17
177
15,500
15,677
10
29
15,716
8,949
3,058
5,892
3,393
1,909
7,039
2,110
3,232
713
985
2,516
1,781
562
173
4,524
15,716
FY18
175
20,237
20,412
11
244
20,667
14,172
3,646
10,527
613
2,044
11,077
3,506
4,920
932
1,719
3,592
2,852
321
419
7,485
20,667
FY19
175
22,277
22,452
7
271
22,730
16,152
4,366
11,786
2,613
888
11,357
4,357
4,595
1,005
1,400
3,913
2,251
1,278
384
7,444
22,730
FY20
175
25,813
25,989
7
558
26,553
20,045
5,324
14,721
1,319
476
16,417
4,957
7,753
2,053
1,655
6,379
3,623
2,230
526
10,038
26,553
FY21E
175
30,372
30,547
7
558
31,112
22,550
6,495
16,055
1,714
476
18,044
6,064
6,858
3,227
1,894
5,176
2,927
1,730
520
12,868
31,112
FY22E
175
35,147
35,322
7
558
35,887
25,021
7,732
17,289
1,443
476
22,692
7,307
8,024
5,191
2,168
6,012
3,437
1,980
595
16,680
35,887
31 July 2020
5
 Motilal Oswal Financial Services
Ajanta Pharma
Financials and Valuations
Ratios
Y/E March
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Net Debt/Equity
(INR M)
FY14
26.4
31.4
67.1
4.0
17.6
57.0
48.0
22.5
11.0
36.4
0.3
2.8
47.4
38.7
45.9
1.6
47
61
37
0.0
FY15
35.7
41.5
95.1
6.0
18.9
42.3
36.3
15.9
8.9
26.3
0.4
19.9
44.0
39.0
56.5
1.6
39
64
32
-0.1
FY16
47.0
52.0
134.6
13.9
29.6
32.1
29.0
11.2
7.6
22.8
0.9
3.2
40.9
38.4
54.7
1.4
43
78
34
0.0
FY17
57.3
64.2
177.2
12.9
22.6
26.3
23.5
8.5
6.6
19.3
0.9
34.8
36.7
35.9
52.1
1.3
38
59
32
-0.2
FY18
53.0
59.7
230.8
0.0
0.0
28.5
25.3
6.5
6.2
20.1
0.0
-1.6
26.0
26.0
33.7
1.0
60
84
49
-0.1
FY19
44.4
52.6
253.8
9.0
20.5
33.9
28.7
5.9
6.4
23.0
0.6
7.8
18.3
18.4
21.4
0.9
77
82
40
-0.1
FY20
51.1
61.9
293.8
8.6
16.3
29.5
24.3
5.1
5.1
18.8
0.6
7.5
18.7
19.0
20.7
1.0
66
109
51
-0.1
FY21E
64.0
77.3
345.4
12.5
19.5
23.6
19.5
4.4
4.7
15.2
0.8
21.2
20.0
20.3
22.2
0.9
80
90
38
-0.12
FY22E
71.7
85.7
399.3
17.7
24.7
21.0
17.6
3.8
4.0
13.9
1.2
34.7
19.3
19.4
22.0
0.9
84
92
39
-0.16
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY14
3,299
439
87
-937
-745
2,142
-18
2,124
-1,878
246
0
97
-1,781
57
-87
-171
0
-201
142
462
604
FY15
4,560
516
59
-1,461
-817
2,858
-64
2,794
-1,036
1,759
-45
102
-979
-581
-60
-411
0
-1,052
764
604
1,368
FY16
5,589
444
49
-1,615
-1,243
3,224
38
3,262
-2,975
287
-36
-11
-3,022
218
-49
-1,342
0
-1,173
-934
1,368
434
FY17
6,482
612
35
-1,428
285
5,986
95
6,081
-3,002
3,079
-914
182
-3,734
-746
-35
-1,287
0
-2,068
279
434
713
FY18
6,226
596
-238
-1,539
-2,742
2,302
0
2,302
-2,444
-141
-135
241
-2,338
1
-4
b
258
253
218
713
930
FY19
5,303
721
-199
-1,273
115
4,667
0
4,667
-3,979
688
1,155
211
-2,613
-5
-12
-792
-1,171
-1,979
74
931
1,005
FY20
6,218
957
-403
-1,963
-1,548
3,262
0
3,262
-2,599
663
413
522
-1,664
1
-119
-762
330
-551
1,047
1,005
2,053
FY21E
7,800
1,171
-404
-2,137
-1,656
4,774
0
4,774
-2,900
1,874
0
501
-2,399
0
-96
-1,104
0
-1,200
1,174
2,053
3,227
(INR M)
FY22E
8,455
1,237
-460
-2,114
-1,847
5,271
0
5,271
-2,200
3,071
0
541
-1,659
0
-81
-1,566
0
-1,648
1,965
3,227
5,191
31 July 2020
6
 Motilal Oswal Financial Services
Ajanta Pharma
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
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A graph of daily closing prices of securities is available at
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Research Analyst views on Subject Company may vary based on Fundamental
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Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
31 July 2020
7
 Motilal Oswal Financial Services
Ajanta Pharma
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
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expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
31 July 2020
8