Motilal Oswal has recommended a neutral rating on Glenmark Pharma with a target of Rs 635 in its September 23, 2008 research report. "We expect Glenmark to record 54% CAGR for adjusted earnings driven by significant ramp up in US and branded generic markets. Our estimates exclude upsides from NCE research. We believe that Glenmark deserves premium valuations given its differentiated business model and strong earnings growth."

"We value the company on a sum-of-the-parts basis by valuing the ex-NCE business at 17x FY10E earnings and DCF value of Rs 150 per share for the NCE business. Our SOTP-based target price for Glenmark is Rs 635, an upside of 8%. We initiate coverage with a Neutral rating," says Motilal Oswal's research report.

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