Gland Pharma shares climb over 6% post Q2 results. Should you buy or sell?
Gland Pharma climbed 6% to Rs 1,674.6 in Tuesday's trade on BSE despite the firm posting a 20% year-on-year (YoY) fall in consolidated net profit to Rs 194 crore for the September quarter of the financial year 2024. The company reported a profit of Rs 241.2 crore in the same period last year.
However, its revenue came in at Rs 1,373.4 crore, up 32% from the year-ago quarter figure of Rs 1,044.4 crore.
Meanwhile, the company's earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 320.5 crore, up from Rs 297 crore in the year-ago period.
Following Q2 results, domestic brokerage firm Motilal Oswal reiterated its 'Buy' rating on Gland Pharma with a target price of Rs 1920.
«Gland Pharma delivered an in-line operational performance in 2QFY24.
Core markets and India showed superior performances, with a normalization in certain key products. GLAND continued its effort to improve the operational performance of Cenexi as well.
We maintain our FY24/FY25 estimates. We value GLAND at 26x 12M forward earnings to arrive at a TP of Rs 1,920,» Motilal said.
At 11.21 a.m., the scrip was trading 5% higher at Rs 1,653.5 on BSE.
The stock has also surged 23% in the past three months, however, it has declined 55% in the last two years.
Meanwhile, Axis Securities maintained its 'Hold' rating on Gland Pharma with a target price of Rs 1700.
«The company has enhanced its geographical footprint in Europe through the acquisition and integration of Cenexi for CDMO operations and new B2B partnerships in other markets through portfolio maximization of the US-approved ANDA portfolio. The company is First-to-File (FTF) for one product, which it filed in H1FY24 with a US market size of around $170 Mn.
