Gland Pharma rides high on valuation comfort, strong growth prospects

Target prices post brokerage upgrades point to more upsides

Gland Pharma
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The company has been facing syringe shortage in the US market and is looking for alternatives even as it incurs higher freight costs for procuring syringes.

Ram Prasad Sahu Mumbai
The stock of generic injectables major Gland Pharma is down 23 per cent since its highs in April this year. The stock has been under pressure on worries of gross margin pressures, component shortages and possibility of an equity stake sale by earlier promoters.

The company has been facing syringe shortage in the US market and is looking for alternatives even as it incurs higher freight costs for procuring syringes. Gross margins in the March quarter, which was down 533 basis points YoY, was impacted given higher freight/distribution costs. The company expects the situation to stabilise in the coming quarter.

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First Published: Jun 21 2022 | 7:06 PM IST

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