Buy Gland Pharma; target of Rs 3700: Motilal Oswal

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Motilal Oswal's research report on Gland Pharma

After delivering 27% earnings CAGR over FY17-22, GLAND is well-placed to sustain its earnings growth momentum over the next three-to-five years. It has been enhancing its offerings by adding complex products to its portfolio, scaling the product at the global level, expanding capacity to aid manufacturing, as well as increased backward integration. While constraints on availability of certain materials may hinder performance over the near term, GLAND is in good stead for consistent performance over the next three-to-five years. The 40% correction over the past 10-12 months, despite healthy earnings growth, provides sufficient cushion on the valuation front. The stock is trading at 30x FY23E EPS of INR89 and 23x FY24E EPS of INR113.

Outlook

Given its superior business model, consistent compliance,strong return ratios, and surplus cash for inorganic opportunities, we value the stock at 33x 12-month forward earnings to arrive at our TP of INR3,700. We reiterate our Buy rating.

More Info

At 14:14 hrs Gland Pharma was quoting at Rs 2,650.00, up Rs 6.30, or 0.24 percent.

It has touched an intraday high of Rs 2,670.50 and an intraday low of Rs 2,620.85.

It was trading with volumes of 5,498 shares, compared to its thirty day average of 38,402 shares, a decrease of -85.68 percent.

In the previous trading session, the share closed up 1.40 percent or Rs 36.60 at Rs 2,643.70.

The share touched its 52-week high Rs 4,324.65 and 52-week low Rs 2,498.00 on 13 August, 2021 and 20 June, 2022, respectively.

Currently, it is trading 38.72 percent below its 52-week high and 6.08 percent above its 52-week low.

Market capitalisation stands at Rs 43,633.82 crore.

For all recommendations report, click here

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