Geojit's research report on Glenmark Pharmaceuticals
Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 80 countries across the globe. GNP is primarily focused on generics, specialty and OTC businesses. The company has strong regional/country-specific presence in diabetes, cardiovascular and oral contraceptives. Q2FY22 revenue up 7.5% YoY (+6.1% QoQ) primarily owing to strong performance in the Africa, Asia, and CIS regions (ROW), and Europe. EBITDA grew 6.8% YoY, though margin saw a negligible contraction of 10bps YoY at 18.9% owing to higher operating costs. During the quarter, company paid off a substantial portion of debt on its books using internal accruals and IPO proceeds. We remain cautious of near term performance, esp. in the domestic India business and Americas, as margins may come under stress in the coming quarters with further rise in input costs. Company’s long-term potential however remains positive.
Outlook
We revise our rating down to ACCUMULATE with a revised TP of Rs. 575 based on 13x FY23E adj. EPS.
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