Underperform on Glenmark with a target at Rs 900: CLSA

CLSA maintains underperform rating on Glenmark post March quarter results and raised its 12-month target price to Rs 900 from Rs 870 earlier. The pharma major registered strong sales growth in 4QFY16 but weak Ebitda on forex led to weak performance.

Weak free cash flows (FCF) a concern while balance sheet improvement only in 1HFY18. Going forward, improvement hinges on successful Zetia launch.