Buy Gland Pharma; target of Rs 2440: Motilal Oswal

Motilal Oswal is bullish on Gland Pharma has recommended buy rating on the stock with a target price of Rs 2440 in its research report dated August 06, 2024.

Broker Research

August 07, 2024 / 13:02 IST

Buy

Motilal Oswal's research report on Gland Pharma

Gland Pharma (GLAND) reported a miss on its 1QFY25 earnings, largely due to lower milestone income for the quarter. Further, postponement of the off-take of products by European customers hit 1QFY25 performance to some extent. Having said this, management maintained its outlook for the base business as well as for Cenexi. We cut our estimates by 6%/2% for FY25/FY26 factoring a) maintenance shutdown at Cenexi facilities, b) muted outlook for India segment, and c) gradual improvement in outlook of business from China. We value GLAND at 30x 12M forward earnings to arrive at our TP of INR2,440.

Outlook

We cut our estimates by 6%/2% for FY25/FY26 factoring a) maintenance shutdown at Cenexi facilities, b) muted outlook for India segment, and c) gradual improvement in outlook of business from China. We value GLAND at 30x 12M forward earnings to arrive at our TP of INR2,440.

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