Motilal Oswal's research report on Gland Pharma
Gland Pharma (GLAND) has seen an encouraging revival in its business performance in 9MFY24 after a weak FY23. The revival in sales in the company’s core markets has been driven by new launches and the relaunch of certain products. With the resolution of supply chain issues, we believe that GLAND is expected to clock a 16% CAGR in sales to INR33b compared to a modest 2% sales CAGR over FY22-24. The company is also working on new registrations and adding new markets in the ROW segment. Further, GLAND is also adding new areas of growth through the M&A and organic routes.
Outlook
We value GLAND at 27x 12M forward earnings to arrive at a TP of INR2,240. Considering a 20% earnings CAGR over FY24-26, significant underperformance on absolute basis (5% appreciation in past 6M) as well as on relative basis (vs. BSE Healthcare Index), and attractive valuation at 24x FY26E EPS, we reiterate our BUY rating on the stock.
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