Neutral Glenmark Pharma; target of Rs 1050: Motilal Oswal

Motilal Oswal's research report on Glenmark Pharma

Glenmark Pharma (GNP) posted lower-than-expected revenue in 4QFY24. However, it delivered better-than-expected profitability for the quarter, aided by an improved product mix and lower raw material costs. Having said this, GNP has taken a considerable impairment charge on manufacturing facilities and certain intangibles (~INR32b) during the quarter.We raise our earnings estimates by 17%/10% for FY25/FY26, factoring in: 1) new launches in the US market, 2) increased market share in cardiac, derma, and respiratory products in the Domestic Formulation (DF) segment, and c) a significant reduction in interest costs.

Outlook

We value GNP at 21x 12M forward earnings to arrive at our TP of INR1,050.