Buy Gland Pharma; target of Rs 2260: Sharekhan

Sharekhan is bullish on Gland Pharma has recommended buy rating on the stock with a target price of Rs 2260 in its research report dated October 27, 2022.

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October 28, 2022 / 17:14 IST

26 Aug, 2025 12:21

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Sharekhan's research report on Gland Pharma

Gland reported another weak quarter in Q2FY23 affected by muted performance across geographies. Core markets marginally grew by 3%, RoW declined by 3% while India business was down by 42% y-o-y which led to 3% y-o-y decline in revenue to Rs. 1,044.4 crore. Gross/EBITDA margins fell by 124/644 bps y-o-y impacted by decline in revenue, unfavourable geography and product mix, pricing pressures in some products and higher employee expenses. PAT declined by 20.2% y-o-y to Rs. 241.2 crore. Despite near-term headwinds due volume decline in the US and cost inflation, the medium-term prospects are intact led by a strong product pipeline and entry into newer markets.

Outlook

Stock has corrected by 41% in the past six months and currently trades at 29.8x/23.6x its FY2023E/FY2024E EPS, which factors in near-term headwinds. We retain a Buy recommendation on Gland Pharma (Gland) with a revised PT of Rs. 2,260.

For all recommendations report, click here