Prabhudas Lilladher has given Accumulate recommendation for Glenmark Pharmaceuticals with a target price of Rs. 600 in its research report issued on Nov 16, 2021

Prabhudas Lilladher’s research report on Glenmark Pharmaceuticals

Glenmark Pharma (GNP) has been able to maintain EBITDA run-rate on a high base. Given flat R&D expense and limited capex requirements, debt will continue to fall in FY23. While, pick up in US sales will be key to drive earnings growth. We have factored in 12% EPS CAGR over FY21-24E. In the near term, any potential out-licensing deals in Ichnos will be key for any further meaningful reduction in debt. At CMP, stock is trading at 13x FY23E P/E.

Outlook

We recommend ‘Accumulate’ with TP of Rs600/share, valuing at 15x FY23E P/E.

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