Buy Glenmark Pharma; target of Rs 913: Firstcall

Firstcall Research report on Glenmark Pharma

"For the second quarter ended September 30, 2014, Glenmark’s consolidated revenue was at Rs. 16807.08 Mn (USD 277.50 Mn) as against Rs. 14,633.80 Mn (USD 235.68 Mn) in the corresponding quarter recording a growth of 14.85%. Consolidated EBITDA grew by 2.16% to Rs. 3361.92 Mn from Rs. 3290.85 Mn in the quarter. The consolidated Net Profit was at Rs. 1650.78 Mn for the quarter ended September 30, 2014 as compared to Rs. 1542.97 Mn for the previous corresponding quarter registering an increase of 6.99%."

"Sales for the formulation business in India for the quarter, was at Rs. 4781.50 Mn as against Rs. 4176.80 Mn in Q2 FY14, recording a growth of 14.48%. During Q2 FY15, Glenmark Generics Inc., U.S.A. registered revenue from the sale of finished dosage formulations was Rs. 5075.51 Mn as against revenue of Rs. 5578.60 Mn in Q2 FY14, recording a decrease of 9.02%. For the second quarter, revenue from Africa, Asia and CIS region was Rs. 1740.30 Mn as against Rs. 1739.65 Mn for the previous corresponding quarter, recording an increase of 0.04%. Glenmark Europe’s operations revenue for the second quarter ended September 30, 2014 was at Rs. 1305.53 Mn as against Rs. 1043.90 Mn, recording growth of 25.06%. Glenmark’s revenue from its Latin American and Caribbean operations was at Rs. 2308.80 Mn for the quarter ended September 30, 2014. During Q2 FY15, revenue from sale of API to regulated and semi-regulated markets globally was Rs. 1595.44 Mn."

"The Company has delivered strong results backed by good performances by India, Rest of the World, Europe and LATAM businesses. The India business strengthened itself in the following therapeutic segments with significant growth in market share from IMS MAT September 2013 to MAT September 2014 respectively. The Asia region grew 12% in secondary sales. The performance of the Asia region was subdued during the quarter. The Mexico, Venezuela and the Caribbean subsidiaries performed well recording good growth during the quarter. The Mexico and Venezuela subsidiary grew more than 200% and 300% respectively. The company has a pipeline of 3 NCE and 4 NBE molecules in clinical trials or ready to enter clinical trials soon, including the in-licensed molecule "Crofelemer”. Hence, we recommend to buy the stock with a target price of Rs 913 for medium to long term investment", says Firstcall Research Report.

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