Buy Glenmark Pharmaceuticals, target Rs 1,186: Prabhudas Lilladher

Prabhudas Lilladher maintains a buy rating on Glenmark with a 12-month target price of Rs 1186. "US revenues are expected to gain 23 per cent annualised in FY16-18E on the back of annual approvals of 12-15 products. Glenmark currently has a pipeline of 22 & 18 ANDAs which have been pending for more than 36 months & 24 months," Prabhudas Lilladher said.

Glenmark's shares have taken a cut of 13 per cent so far this year, but Prabhudas Lilladher believes the company can grow on the back of Research & Development investments.

"With support from the strong brands and expansion of market share by 100bps (3.2 per cent) in FY10-14, we expect domestic sales growth to outperform industry growth and achieve 18 per cent CAGR in FY15-18E," the brokerage said.