IDBI Capital is bullish on Glenmark Pharmaceuticals has recommended Hold rating on the stock with a target price of Rs 763 in its research report dated July 28, 2017.
IDBI Capital's research report on Glenmark Pharmaceuticals
Q1FY18 revenues increased by 20% YoY lower than our forecast by 7.8%. EBITDA margin of 24.4% were better than our estimates of 21.5%, mainly on the back of better gross margins. However, PAT of Rs3.3bn, +47% YoY, was a beat by 9.5%. For FY18, Glenmark has guided gZetia becoming a USD170-180mn franchise, however, remains confident for a 8-10% YoY growth in revenue in FY18E with EBITDA margins of 22%. For the US region, aims a flat or marginally better revenues in FY18E and signing atleast one out-licensing deal to help reduce debt.
No major reduction in net debt, Maintain HOLD, TP Rs763 Glenmark has been confident to utilize the gZetia cashflows to reduce FY18 debt.
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