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Glenmark Pharma jumps over 20% after CLSA upgrades to 'buy' from 'sell'

CLSA has increased the target price of the firm to Rs 410 from Rs 350 earlier and raised its FY20-22 earnings per share (EPS) by 3 per cent - 22 per cent.

SI Reporter  |  New Delhi 

Glenmark Pharmaceuticals

Extending their gains, shares of Glenmark Pharmaceuticals rallied over 20 per cent to Rs 363.65 apiece on the BSE on Monday after global brokerage firm upgraded the stock to 'buy' from 'Sell', citing attractive valuation.

At 01:43 am, the stock was trading over 20 per cent higher at Rs 361.40 apiece on the BSE as compared to 0.18 per cent decline in the S&P BSE Sensex. In the last two sessions, the stock has zoomed 36 per cent (from Thursday's closing price) and has surged 23 per cent from its 52-week low, touched on the same day.

has increased the target price of the firm to Rs 410 from Rs 350 earlier and raised its FY20-22 earnings per share (EPS) by 3 per cent - 22 per cent. The brokerage firm, in its review report, said the US sales momentum is expected to remain strong whereas India should continue growing above the industry rate. It also noted that all geographies witnessed year-on-year (YoY) growth for the first time in over three years.

On the flip side, added that leveraged balance sheet remains a concern and it doesn't see any reduction in net debt in 1HFY20. Besides, the company is expected to do high research and development (R&D) spending in the medium term.

Last week, the pharma company posted a consolidated net profit to Rs 255.54 crore for the second quarter ended on September, 2019. It had posted a net profit of Rs 414 crore in the July-September quarter a year ago.

Net sales of the company stood at Rs 2,763.73 crore, up 8.81 per cent, during the period under review as against Rs 2,539.85 crore of the corresponding quarter previous fiscal.

First Published: Mon, November 18 2019. 10:03 IST
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