February 08, 2017 / 17:24 IST
Glenmark Pharmaceuticals’ (GNP) Q3FY17 was driven by the 180 days exclusivity for gZetia that may have contributed USD70mn. However, rest of business was sluggish, with India hit by demonetisation and halt of sales in Venezuela. Revenue, EBITDA and PAT grew 41%, 106% and 143% YoY, respectively. Despite Zetia, both net and gross debt spurted by INR 6.2bn/15bn during 9mFY17.
OutlookNiche launches like Zyvox, Welchol, Renvela/ Renagel, apart from Zetia, are built in our estimates and critical to prune debt, which continues to inch up. Key risk is that balance sheet still holds USD45mn worth of Venezuelan assets at VEF10/USD, which could be written down. Any out-licensing deals over next 12-18 months could lend some upside. Current valuation is 19.2x FY19E EPS. We roll forward our target price to INR 820 (based on 16x FY19E EPS). Maintain ‘HOLD/SP’.
Story continues below Advertisement
For all recommendations, click hereDisclaimer: 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
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
