Gland Pharma rallied over 60 per cent so far in 2021 compared to 22 per cent upside seen in the Nifty50 in the same period.

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The company with a market capitalization of nearly Rs 64,000 cr hit a 52-week high of Rs 4350 on 12 August 2021, and since then it has been consolidating. The stock hit a low of Rs 3314 on 25 October and then bounced back.

After hitting a low near 3300 levels in October the stock started its upwards journey and should be able to retest its 52-week high level of Rs 4350 in next 6-9 months that translates into an upside of over 16 per cent from Rs 3748 recorded on 22 December, suggest experts.

Gland Pharma is a company with a unique business model, where its revenue streams are majorly contributed by B2B business. Their US business is a key driver with the following launches like gErtapenem (partnered with DRL, FY21), gRegadenoson (FY23), gPlerixafor (FY23), gPemetrexed (FY23), gEpinephrine (FY23) and gCopaxone (fill-finish for DRL, FY23).

Their ability to operate at scale, low-cost manufacturing base and blemish-less track record will allow them to sustain and win contracts. The vaccines opportunity (tie-up with Sputnik) and plans to enter biosimilars is highly encouraging, suggest experts.
 
“There is a massive opportunity at exploring the Chinese market. Gland is better positioned to capture the injectables market opportunity in China compared to other Indian generic peers due to the backing of Fosun's commercial and regulatory muscle (Gland Pharma parent),” Ashish Chaturmohta, Director Research, Sanctum Wealth, said.

Technically, the stock is trading well above the crucial short-and-long-term moving averages placed at 30,50,100 and 200 Days Moving Average which is a positive sign for the bulls.

Pricewise, the stock is in a long-term uptrend forming a higher top and higher bottom i.e., each new high after an up move is higher than previous high, and each new low after a decline is higher than the previous low.

“After touching high of 4350 in August this year price has been in correction mode to decline 38.2% Fibonacci retracement of the entire up move from low of 1700 to 4350,” added Chaturmohta.

Price has consolidated above the Fibonacci level and showing signs of up move. It is trading as breakout level of falling resistance trend line (dotted falling line).

“The daily moving average convergence and divergence (MACD) has moved above neutral level of zero suggesting resumption of uptrend,” he added.

Chaturmohta further added that the stock can be bought at current levels and on dips to 3570 with a stop loss of 3400 for the target of 4350 incoming 6 to 9 months.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)