Buy Ajanta Pharma with target price of Rs.255 - Motilal Oswal

AJANTA PHARMA LTD (AJP IN; Mkt Cap USD51m, CMP Rs199, Buy)

We recommend to BUY Ajanta Pharma with a price target of Rs.255:

- Above industry growth in the domestic market and strong export growth to drive revenues by 14%

- Investment in R&D to the tune of 6-7% of revenues to create pipeline for growth beyond FY12

- Institutional sales adds to credentials and could present earnings upsides

Debt repayment and rising ROE to raise valuations above historical averages.

Source : Equity Bulls

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