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What should investors do with Glenmark Pharma post Q4 earnings: Buy, sell or hold? –

Glenmark Pharmaceuticals share price added 3 percent in early trade on June 1. The company has reported a 6.15 percent rise in its consolidated net profit to Rs 233.87 crore for the quarter ended March 2021.

The company had posted a net profit of Rs 220.30 crore in the corresponding period of the previous fiscal.

Its consolidated revenue from operations stood at Rs 2,859.9 crore versus Rs 2,767.5 crore YoY.

Here is what brokerages have to say about the stock and the company after the March quarter earnings:

Citi | Rating: Buy | Target: Raised to Rs 720

The FY21 topline was muted at 3%. One-time debt reduction up to Rs 1,500 crore possible from life sciences.

Morgan Stanley | Rating: Underweight | Target: Rs 554

The company expects to monetize its NCE pipeline in FY22, which should help release free cash flow. The base business should maintain low double-digit growth at 19-20% profitability.

Macquarie | Rating: Outperform | Target: Raised to Rs 670 from Rs 595

The free cash flow prospects are looking brighter in FY22 with Rs 900-1,000 crore inflow likely from API IPO.

The US business will recover from FY21 lows, while India, Europe & API are to grow well. We raise FY22/23E EPS estimates by 8/5%

Goldman Sachs | Rating: Neutral | Target: Rs 580

Q4 was in line, and we expect steady growth in FY22. The company is focussed on launching Ryaltris nasal spray in more markets.

Motilal Oswal | Rating: Neutral | Target: Rs 580

We raise our FY22E/FY23E EPS estimate by 8% to factor in strong growth in the domestic segment, partly aided by COVID-19 products (FabiFlu); growth in US Formulations driven by normalized levels of price erosion in the Dermatology portfolio and product launches; higher growth in Europe, with niche launches; and lower interest outgo, with debt reduction.

We expect a 12% earnings CAGR, led by 4%/8%/12.5% sales CAGR in US/DF/Europe segments over FY21-23E, with a stable margin.

ICICI Direct | Rating: Buy | Target: Rs 750

Despite facing COVID-related challenges in various geographies in Q4, the company posted a stable top line while EBITDA was higher mainly due to better gross margins. Going ahead, the management expects margins to improve due to cost rationalisation measures and a decline in R&D expenses as a percentage of sales.

We believe debt reduction, improvement in free cash flow and margins are key events to watch. As the legacy deflators seem waning with thoughtful steps and restructuring, we expect sustained investors interest in the theme.

At 09:23 hrs, Glenmark Pharma was quoting at Rs 604.05, up Rs 11.45, or 1.93 percent on the BSE.

The share touched a 52-week high of Rs 640.30 and a 52-week low of Rs 341.60 on 12 May 2021 and 28 May 2020, respectively.

Currently, it is trading 5.66 percent below its 52-week high and 76.83 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. advises users to check with certified experts before taking any investment decisions.