Brokerages post mixed sentiment for THIS pharma company – check price targets here

Days after its fourth-quarter results, the brokerages post a mixed sentiment for Glenmark Pharma, which reported a growth in profit by six per cent to Rs 234 crores year-on-year (YoY) basis. 

Maintaining a Buy stance, CITI has raised the target for Glenmark to Rs 720 apiece as the company’s management upbeat on growing FY22 revenue by 10 per cent. It said, one-time debt reduction up to of Rs 1500 crore possible from the Life Sciences of the company. 

Glenmark’s base business should maintain low double-digit growth at 19-20 per cent profitability, Morgan Stanley said in its expectations, maintaining an Underweight call on the stock. It added, the company expects to monetise its NCE pipeline in FY22 and it should help release free cash flow. 

Meanwhile, Macquarie raises FY22 and FY23 EPS estimates for Glenmark by eight and five per cent, maintaining an Outperform option and revises its price target to Rs 670 per share. The brokerage firm added, free cash flow prospects are looking brighter in FY22, Rs 900-1000 crore likely from API IPO. 

Reducing the target from the current market price, Goldman Sachs maintained a Neutral stance despite the Q4 results being in line, expecting steady growth in FY22. The brokerage firm mentioned, the company is focussed on launching Ryaltris Nasal Spray in more markets. 

The stock touched its day’s high in the opening trade today, by rising around one and a half per cent to Rs 611.85 per share as compared to Rs 532.50 per share previous close. 

The company had posted a net profit of Rs 220.30 crore in the corresponding period of the previous fiscal, Glenmark said in a regulatory filing on Friday. 

Glenmark Pharmaceuticals Chairman and MD Glenn Saldanha said, "We delivered consistent performance during the year despite operational challenges due to the COVID-19 pandemic. We led from the front in India's fight against the pandemic at its very onset, with our leading brand FabiFlu.” 

The company's board has recommended a dividend of Rs 2.50 per share for the financial year 2020-21, Glenmark said in filing to exchanges.