Cash flow improvement may lead to Glenmark re-rating: IIFL

Cash flow improvement may lead to Glenmark re-rating, says Bino Pathiparampil, IIFL Institutional Equities.

Pathiparampil told CNBC-TV18, "Glenmark’s reported numbers were pretty good in most markets US, domestic, other  emerging markets (EMs). The company has surpassed expectations. But at the time on the negative side the  ‘Revamilast’ which was possibly the most advanced in their New Chemical Entity (NCE) pipeline has been shelved as  of now atleast for one indication."
He further added, "Also, as our slight concern was that despite the growth company did not show any significant  improvement in  . If the kind of growth that they delivered continues then we should see a continued sustained upside  to the stock price. Ofcourse some major development around NCE side in terms of a new out-licensing or of some of  the candidates going through successful phase II b trial could be a trigger and improvement in cash flows could further  re-rate the stock."