Accumulate Glenmark Pharma; target of Rs 1085: Emkay

Emkay's research report on Glenmark PharmaINR appreciation against EM currencies remains one of the biggest near term risks to Glenmark’s earnings as EM’s accounted for nearly 40-45% of revenue growth in FY15Debtor days remains Glenmark’s Achilles heel with dues over 6 months at c11% of overall debtors far higher than most comparable peersSignificant debt maturities over the next 2 years (c56% of debt) though we don’t see any issues in refinancing the sameDe-leveraging completely dependent on gZetia cash flows (launch Q4 FY17) as rest of the business unlikely to drive debt reductionMaintain our Accumulate rating with TP of 1,085/share. However given the recent sharp run up and near term headwinds from EMs, we would look for better entry opportunities.For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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