Domestic growth trajectory to remain strong for Glenmark in near term

Debt reduction key if the stock is to fetch higher valuation multiples

After posting the highest growth among top Indian pharma firms in FY21, Glenmark Pharmaceuticals is expected to maintain the growth trajectory in the near term. The trigger for the same would be the higher demand for Covid-related drugs such as favipiravir and traction in the non-Covid portfolio. The stock is up 15 per cent since the start of the month (5 per cent on Thursday) on growth expectations and likely reduction of debt in FY22.

Rahul Jeewani and Yash Rachh of IIFL Securities say that with India experiencing its second wave of Covid infections and having surpassed previous peak daily