Shares of Gland Pharma Ltd. gained 7.7% to Rs 4,089 apiece, the steepest rise in over two months on the back of April-June quarter earnings. Trading volume was 3,17,252 shares, 11 times the 20-day average of 29,123 shares for this time of the day.
The pharma company reported 30% QoQ rise in revenue to Rs 1,153.90 crore while net profit gained 35% to Rs 350.60 crore vs Rs 260.40 crore in the previous quarter.
Margin expanded to 37.8% from 36.9% in Q4FY21 while Ebidta witnessed a growth of 33% in the quarter gone by. The company stated that the strong performance was driven by growth in key products like Micafungin, Enoxaparin, Heparin and Dexemedetomidine.
Out of the 14 analysts tracking the company, 10 maintained ‘buy’, 2 maintained ‘hold’ and 2 analysts maintained ‘sell’ recommendation. The overall consensus price target of analysts tracked by Bloomberg implied an downside of 7.4%.
Gland Pharma traded at 51 times its estimated EPS for the coming year and was priced at 17.1 times book value. Shares of the pharma company have risen 5.1% in the last 5 days, 26% in the last 30 days and nearly 170% in the past 52 weeks, respectively.
Brokerage View
Motilal Oswal
Recommends ‘buy’ with a target price of Rs 4,460.
Complex products to drive growth at a rapid pace
Robust revenue growth across all geographies and scaling up of manufacturing of Covid vaccine boded well for the company.
Raise our FY22E/FY23E EPS estimate by 8% to factor in increased reach, penetration in global and domestic markets, higher offtake of Remdesivir/Enoxaparin and continued manufacturing efficiency.
Superior ramp up in existing products and healthy build-up of complex product pipeless to drive growth in the upcoming quarters.
Nirmal Bang
Maintains ‘accumulate’ with a target price of Rs 3,696.
Strong growth driven by higher sales in India and other global markets.
Covid-19 portfolio (Remdesivir and Enoxaparin) aided growth in the April-June quarter.
Vaccine fill and finish contract from Hetero to offset decline in Covid portfolio in the upcoming quarters.
Company on track to commercialise the Sputnik vaccine drug substance facility by October or November 2021.
New approvals in the U.S., monetisation of filings in China and inorganic initiatives to drive growth.
