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Buy Glenmark Pharma; target of Rs 314: Nirmal Bang
Nirmal Bang is bullish on Glenmark Pharmaceuticals and has recommended buy rating on the stock with a target of Rs 314, in its March 26, 2010 research report.
Nirmal Bang is bullish on Glenmark Pharmaceuticals and has recommended buy rating on the stock with a target of Rs 314, in its March 26, 2010 research report.
"We believe the revenues of the company will grow at a CAGR of 17.2% over a period of two years from 2010 to 2012E whereas net profit will grow at a higher CAGR of 30.7% during the same period, on account of balance sheet restructuring exercises, cost containment program and management of working capital cycle. We expect the company to earn an EPS of Rs. 17.4 in FY11E and Rs.21.1 in FY12E."
"At the CMP of Rs 252 per share, GPL is currently trading at a PE of 14.5x FY11E and 11.9x FY12E EPS estimates, which looks quite attractive when compared to its peers. At Rs 252 per share the stock is trading at a discount of 24% from our intrinsic price of Rs. 314 per share which is 18x FY11E earnings. With growth triggers like first-to-file opportunities, listing of its subsidiary (not factored in our financials), out-licensing deal for its NCE (not factored in our projections) the stock looks undervalued. We recommend a BUY rating on the stock with a price target of Rs 314 with a long term view."
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