Buy Glenmark Pharmaceuticals; target of Rs 900: Axis Direct

Axis Direct's research report onGlenmark Pharmaceuticals

Glenmark's (GNP) Q4 PAT was below estimates due to significant miss in US sales (USD 150 mn vs. estimated USD 193 mn). The sales miss was led by lower gZetia sales (USD 50 mn vs. est. USD 80 mn) and 15% price erosion in US base business.

Outlook

On weak Q4, miss in guidance and increasing sector headwinds, we cut FY18/19E EPS by 10% each and TP to Rs 900 (17x FY19E EPS; vs. Rs 1,120 earlier at 19x). We maintain BUY rating given GNP’s strong R&D pipeline in US, steady India and improving EM# business.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More