Prabhudas Lilladher is bearish on Glenmark Pharmaceuticals has recommended sell rating on the stock with a target price of Rs 365 in its research report dated June 29, 2020.
Prabhudas Lilladher's research report on Glenmark Pharmaceuticals
We increase our earnings estimate (11% FY21 and 18% FY22E) and assigned multiple after taking into account the best possible scenario from our assumptions, as guided by GNP. Q4FY20 performance was led by one-off opportunities and the guidance for FY21E continues with its concerns related to 1)US derma products (25-30% of US revenue) pricing pressures 2)insignificant EBITDA contribution from the new Monroe facility even with qualitative approvals (due to higher operating cost) 3)USD appreciation to increase the gross debt figure 4)LATAM and Semi-regulated market to be impacted due to COVID and currency volatility and 5)much-hyped Favipiravir to fall short of its expectation in coming months.
Outlook
We continue to maintain SELL with TP of Rs365 (earlier Rs257) based on 12x PE (earlier 10x) of FY22E.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More