Moneycontrol BureauShares of Glenmark Pharma advanced 7 percent intraday Friday on the back of strong December quarter numbers.The company has reported 143 percent jump in its December quarter consolidated net profit at Rs 477 crore, on the back of strong performance of its formulation business in US aided by 180-day marketing exclusivity of generic Zetia. The company had reported a net profit of Rs 196.1 crore in the same quarter last year.Total income of the company rose 42.6 percent at Rs 2,535 crore versus Rs 1,778.3 crore.
The company's EBITDA increased 106 percent at Rs 765 crore and EBITDA margin was up 940 bps at 30.2 percent.The company has registered 102 percent rise in its US formulation sales at Rs 1,231 crore, while India formulation sales was up 5.9 percent at Rs 516.8 crore.The company's Europe formulation sales was up 11 percent at Rs 195.7 crore and API sales was up 32.5 percent at Rs 192 crore.
JPMorgan has neutral rating on Glenmark with a target price of Rs 915 as it feels improving US growth trajectory and emerging market recovery priced into valuations. The brokerage house says it continues to like long-term business potential and newsflow on innovation R&D pipeline could be a positive trigger but delay in US approvals is a downside risk to estimates. Bank of America Merrill Lynch has reiterated its buy call on the stock, with a target price of Rs 1,100 as it feels strong growth and balance sheet clean-up are major re-rating triggers. Q3 earnings beat was led by higher than expected sales of gZetia in US. US business now is in a strong growth phase. Other segments are in line and operating leverage boosted margin, the brokerage house says. Macquarie has an outperform rating on the stock, with a target price of Rs 1,350. Valuations look attractive, with stock trading at 14x FY18 EPS, the brokerage house feels.At 09:35 hrs Glenmark Pharma was quoting at Rs 954, up Rs 46.05, or 5.07 percent on the BSE.
Posted by Rakesh Patil
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