Motilal Oswal's research report on Gland Pharma
GLAND delivered an in line 4QFY22. India/Rest of the World (RoW) markets led revenue growth in 4QFY22. It remains on track to develop a complex product pipeline and build manufacturing infrastructure to support commercialization. We reduce our FY23/FY24 EPS estimate by 6% each to factor in: a) extended impact of a syringe shortage; b) increased operational cost on account of higher power charges, freight cost, and packaging cost; c) COVID-led delays in approvals for the China market, offset to some extent due to increased captive sourcing of APIs.
We value GLAND at 33x 12-months forward earnings to arrive at our TP of INR3,700. We remain positive on GLAND, given: a) the considerable scope to increase market share in existing products; b) its enhanced capabilities in peptides, hormones, long acting injectables, delivery systems, Biologics; c) its consistent and successful compliance track record; and d) inorganic growth opportunities. We maintain our Buy rating.
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