Strong outlook, attractive valuations driving Glenmark's bounce back

US growth remains crucial for earnings upgrades, while licensing deals can help reduce both, costs and debt

Shares of Glenmark Pharmaceuticals, which had fallen by almost half from their January highs, have seen a sharp rebound in the past few weeks. The stock — up more that 29 per cent in two sessions — has gained 70 per cent in three weeks. While the rally in pharma stocks is supporting this rebound, analysts say a strong growth outlook for the domestic business is helping, even as there are concerns over Glenmark’s US prospects and high debt.

Glenmark stock’s underperformance to peers till March had been attributed to high debt. 

Analysts at CLSA had said the worst returns have been