Buy Gland Pharma; target of Rs 1920: Motilal Oswal

Motilal Oswal's research report on Gland Pharma

Gland Pharma (GLAND) delivered an in-line operational performance in 2QFY24. Core markets and India showed superior performances, with a normalization in certain key products. GLAND continued its effort to improve the operational performance of Cenexi as well. We maintain our FY24/FY25 estimates. We value GLAND at 26x 12M forward earnings to arrive at a TP of INR1,920. After posting a 31% earnings decline YoY in FY23 due to several headwinds, GLAND’s base business is back on track with a superior performance. It continues to enhance its complex portfolio, with one FTF product already filed and at least two to be submitted to regulatory authorities soon. The company has also expanded its facility for the plasma protein portfolio. Accordingly, we estimate a CAGR of 30%/23%/14% in sales/EBITDA/PAT over FY23-25. Reiterate BUY.

Outlook

We maintain our FY24/FY25 estimates. We value GLAND at 26x 12M forward earnings to arrive at a TP of INR1,920.