Buy Glenmark Pharma, tgt Rs 630: HEM Securities

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Buy Glenmark Pharma, tgt Rs 630: HEM Securities

Hem Securities has maintained buy rating on Glenmark Pharma with target price of Rs 630. The company has its unique presence in dermatology and respiratory drugs.

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Hem Securities has maintained buy rating on Glenmark Pharma with target price of Rs 630 in its February 26, 2008 research report. "Glenmark Pharmaceuticals is one of the pioneering companies engaged in the manufacturing and marketing of branded formulations in India and abroad. The company has its presence across 80 countries on the globe. It has been involved in new drug discoveries such as new molecules for asthma, obesity and diabetic segments. The re-search activities include process engineering for API s, new chemical entity research and novel drug delivery systems (NDDS). The company has its unique presence in dermatology and respiratory drugs. Its products like Candid B and Ascoril are positioned among the top 300 pharmaceutical products. Glenmark Pharma is a pioneer in the formulations segment in the industry. The company has immensely strong fundamentals and the growth rate of the company has been quite impressive. In addition to the tremendous financial performance of the company, its foray into the outer potentially good markets posts another winning opportunity for the company.

Another reason that increases our interest in the stock is the potential pipeline of NCE clinical trials which have been paving way for higher revenues and the entry of the company into the semi solids segment shall add on its revenues and boost its global presence. The highly foresighted research activities of the company also serve as a reason to depend on. The plan of the company to hive off its generic and API business to Glenmark Generics shall help the company to highly unlock its value.  The stock is presently trading at Rs 504 which is about 27.64 times to its book value of Rs 18.18 and 38.70 times to its EPS of Rs 13.02.  Keeping in mind the immense growth opportunities and the bright business prospects, we initiate a BUY signal on the stock with a target price of Rs 630 in the medium term investment horizon expecting an upside potential of 25%." says HEM Securities research report.

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