Buy Gland Pharma, target price Rs 2470: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Gland Pharma with a target price of Rs 2470. The current market price of Gland Pharma is Rs 1808.05 .

Gland Pharma, incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 30927.66 Crore) operating in Pharmaceuticals sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1110.03 Crore, up 19.19 % from last quarter Total Income of Rs 931.29 Crore and down -1.91 % from last year same quarter Total Income of Rs 1131.67 Crore. Company has reported net profit after tax of Rs 241.24 Crore in latest quarter.

The company’s top management includes Mr.Yiu Kwan Stanley Lau, Mr.Essaji Goolam Vahanvati, Mr.Satyanarayana Murthy Chavali, Dr.Jia Ai (Allen) Zhang, Mr.Udo Johannes Vetter, Ms.Xiaohui Guan, Mr.Yao Fang, Mr.Yifang Wu, Mr.Qiyu Chen, Mr.Srinivas Sadu, Ms.Naina Lal Kidwai. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 16 Crore shares outstanding.

Investment Rationale
The company's acquisition of Cenexi group(Cenexi) would enhance its CDMO offerings in the Europe market. The acquisition would also provide the company with the technical know-how in sterile forms, including ophthalmic gel, needleless injectors, and hormones. Also, the sharp correction in the stock over the past six months has made valuation attractive at 21x/18x FY24/FY25 earnings, respectively.

Promoter/FII Holdings
Promoters held 57.86 per cent stake in the company as of 30-Sep-2022, while FIIs owned 9.41 per cent, DIIs 21.92 per cent.