Glenmark slips despite strong Q3 nos, CS outperform report

Healthcare firm Glenmark Pharma fell more than 2 percent on profit booking after rising as much as 5 percent in early trade on Wednesday due to strong numbers in the third quarter.

The company reported stronger-than-expected numbers on all parameters as its consolidated net profit grew by 4.6 times year-on-year to Rs 213 crore in the third quarter of financial year 2012-13.

Consolidated total income grew by 34 percent to Rs 1,381 crore from Rs 1,031 crore during the same period, including out-licensing income of Rs 49.3 crore from Forest Labs.

The research firm Credit Suisse maintained its outperform rating on the stock with a target price of Rs 545.

"Earnings beat estimates by 14 percent due to higher than expected sales in key geographies," Credit Suisse reasoned. The research firm raised the FY13 EPS estimate by 9 percent and expects Glenmark to exceed the upper-end of its EBITDA guidance this year.
 
At 10:25 hours IST, shares declined 2.09 percent to Rs 493.50 amid heavy volumes on Bombay Stock Exchange.

Trading volumes increased 112 percent to 2,36,336 equity shares as against five day average of 1,11,358 shares.

Also Read
Idea Q3 profit below estimates, down 4.5% to Rs 229 cr
CCI to consider approval to RIL's KG-D6, 46 other blocks
Bull's eye: Buy NHPC, Pidilite; short Idea, IVRCL
Stocks in news: Glenmark, Idea, Crompton, Blue Dart