Glenmark: Risk-reward turning favourable even as stocks hit 52-week low

Businesses in other geographies can drive growth, US challenges remain

Drug major Glenmark, which lost nearly 40 per cent of its market value in the past year, saw its share price hit a 52-week low last week on concerns over growth in its US business.

With operating profit margins at 14.6 per cent in the December 2017 quarter (Q3) — the lowest in its recent past — and net profit plunging 78 per cent, the Street sentiment is likely to remain weak.

The company’s US sales fell 40 per cent year-on-year in Q3, mainly due to a high base in the year-ago quarter that witnessed the launch of cholesterol lowering