Hold Gland Pharma, target price Rs 2100: Axis Securities

Axis Securities has hold call on Gland Pharma with a target price of Rs 2100. The current market price of Gland Pharma Ltd. is Rs 1876.1.

Gland Pharma Ltd., incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 31075.06 Crore) operating in Pharmaceuticals sector.

Gland Pharma Ltd. key Products/Revenue Segments include Pharmaceuticals, Sale of services and Export Incentives for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company 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 reported net profit after tax of Rs 241.24 Crore in latest quarter.

Investment Rationale
Injectable companies (HIKMA, HOSIPORA, and Aurobindo) in the US market sales grew by ~4% YoY, the brokerage expects similar growth for GLAND in core markets over a longer period and high double digits growth in India &RoW. FY23 seems to be flat revenue growth due to increased competition and moderation demand for GLAND, therefore it recommends “HOLD” with TP of Rs 2,100.

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.