KRChoksey's research report on Glenmark Pharma
Glenmark Pharmaceuticals reported flat Revenue growth of 0.9% YoY (down 15.3% QoQ) to INR 23,448 mn, due to muted growth in the domestic & the US markets. EBITDA rose 39.8% YoY to INR 4,781 mn (up 2.7% QoQ). EBITDA margin expanded 567 bps YoY to 20.4% in 1QFY21 (from 14.7% in 1QFY20). On sequential basis, EBITDA margin expanded 356 bps QoQ. Reported Net Profit grew strongly by 73.0% YoY (up 15.3% QoQ) to INR 2,540 mn while Adjusted Net Profit grew 53.9% YoY (up 20.6% QoQ) to INR 2,261 mn. Reported Net Profit Margin expanded 451 bps YoY to 10.8% (up 287 bps QoQ) from 6.3% in 1QFY20. Adj. NPM expanded 332 bps YoY, (up 287 bps QoQ) to 9.6% in 1QFY21.
We continue to apply PE multiple of 14.5x on FY22E EPS of INR 39.7/share and revise our target price to 576/share (previously INR 548 per share); an upside potential of 20.0% and accordingly reiterate a BUY rating on the shares of Glenmark Pharma.
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