Add Glenmark Pharmaceuticals, target price Rs 649: ICICI Securities

ICICI Securities has add call on Glenmark Pharmaceuticals with a target price of Rs 649. The current market price of Glenmark Pharmaceuticals Ltd. is Rs 563.8. Time period given by analyst is one year when Glenmark Pharmaceuticals price can reach defined target.

Glenmark Pharmaceuticals Ltd., incorporated in the year 1977, is a Mid Cap company (having a market cap of Rs 15966.49 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3023.54 Crore, up 5.41 % from last quarter Total Income of Rs 2868.39 Crore and up 25.81 % from last year same quarter Total Income of Rs 2403.30 Crore. Company reported net profit after tax of Rs 306.53 Crore in latest quarter.


Investment Rationale
The brokerage remains positive on stock given strong India business and attractive valuation of 13.7xFY23E earnings. It largely maintains estimates and reiterate ADD on the stock with a revised target price of Rs649/share based on 16xFY23E earnings (earlier: Rs655/share). Key downside risks: Higher pricing pressure in the US and regulatory hurdles.

Promoter/FII Holdings
Promoters held 46.6 per cent stake in the company as of June 30, 2021, while FIIs held 27 per cent, DIIs 9.6 per cent and public and others 16.8 per cent.