Buy Gland Pharma, target price Rs 1,970: Motilal Oswal Securities
buy call on Gland Pharma with a target price of Rs 1970. The current market price of Gland Pharma is Rs 1786.4. Gland Pharma, incorporated in 1978, is a Small Cap company with a market cap of Rs 29372.76 crore, operating in the pharmaceuticals sector.
Gland Pharma's key products/revenue segments include Pharmaceuticals, Sale of services, Export Incentives for the year ending 31-Mar-2024.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 1465.49 crore, up .85% from last quarter Total Income of Rs 1453.14 crore and up 2.73% from last year same quarter Total Income of Rs 1426.58 Crore. Company has reported net profit after tax of Rs 163.53 Crore in latest quarter.
Investment Rationale
According to Motilal Oswal Financial Services, with two years of earnings decline for Gland Pharma in FY23/FY24, the earnings are largely at the trough and expected to experience revival over FY25-27. They expect 20% earnings CAGR over FY25-27, led by increased volume offtake of base products such as enoxaparin, EBITDA break-even of Cenexi and subsequent better operating leverage, the additional business in the biologics segment, and commercialization of new products in the core market segment. Considering this outlook and stock trading at 16x/14x FY26/FY27 EV/EBITDA and 27x/22.5x FY26/FY27 PE, the brokerage reiterates a BUY.
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