Hold Glenmark Pharma; target of Rs 580: Sushil Finance

Sushil Finance's research report on Glenmark Pharma

"Glenmark Pharma registered strong revenue growth for the quarter with strong performance in markets such as India, LataM & Europe whereas the only disappointment was low growth in the US market on account of withdrawal Montelukast tablets from the market (lower margins) and lack of new approvals. Growth in the Russian market was also marginally affected due to the mild winter in Q3FY14. However going forward, we expect the growth momentum to continue, driven by consistent growth in its domestic business, faster approvals & new launches in the US market & continuing recovery in Latam and other semi-regulated markets. We have upward revised our EBITDA margin & debt estimates for FY14E & FY15E however our EPS estimate for FY15E remains unchanged. We continue to recommend Hold on the stock with a target price (TP) of Rs 580 (18x FY15E EPS of Rs. 32.2). More out-licensing deals, milestone payments and the successful launch of Crofelemer would act as an upside risk to our estimates," says Sushil Finance research report.

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