Best Time to Buy Glenmark Pharmaceuticals Ltd.

Company at a Glance:

Glenmark Pharmaceuticals Ltd is a global research-led pharmaceutical company with operations in over 80 countries and a presence in generics, specialty, and over-the-counter (OTC) products.

Listed among the top 50 Generics and biosimilar companies in the world

Integrated throughout the pharmaceutical value chain, with a strong presence in drug discovery, API, and finished dose formulations.

With drugs in various stages of clinical development, the institute has established research excellence in both novel small molecule and biologics research.

The fastest-growing pharmaceutical company among the top 20 in the Indian pharmaceutical market In terms of volume, it ranks 15th among US generic pharma companies. 14 world-class manufacturing plants

        

Financial Highlights

Criteria	Mar 16	Mar 17	Mar 18	Mar 19	Mar 20	Mar 21	Mar 22	TTM	Chart
Price	795.05	857.75	547.45	653.15	205.85	464.7	442
Sales +	7562	9079	9074	9865	10641	10944	12305	12636.0
Sales Growth(YOY)	15.2%	20.1%	-0.1%	8.7%	7.9%	2.8%	12.4%	0.13
Sales Growth(Cagr-2 YOY)	12.2%	17.6%	9.5%	4.2%	8.3%	5.3%	7.5%	0.07
Profit before tax	1,044	1,491	1,119	1,301	1,096	1,382	1,441	1629.0
PBT Margin	14%	16%	12%	13%	10%	13%	12%	0.13
Tax %	29%	26%	28%	29%	29%	30%	31%
Net Profit	743	1109	804	925	776	970	994	953.0
Net Profit Margin	9.8%	12.2%	8.9%	9.4%	7.3%	8.9%	8.1%	0.08
% Profit Growth YOY	256%	49%	-28%	15%	-16%	25%	2%	-0.04
EPS in Rs	26.33	39.29	28.49	32.78	27.5	34.38	33.37	31.22
Price to earning	30.2	21.8	19.2	19.9	7.5	13.5	13.2	14.88
Consolidated Figures in Rs. Crores

Total Revenue, Net Profit.& Return of equity(ROE) Comparison with Average Values:

Average Total Revenue Annual Cr (Annual | in cr ₹)				Average Net Profit Annual Cr (Annual | in cr ₹)				Average ROE Annual % (Annual | in cr ₹)
1Yrs	3Yrs	5 Yrs	7 Yrs	1Yrs	3Yrs	5 Yrs	7 Yrs	1Yrs	3Yrs	5 Yrs	7 Yrs
12305.0	11961.7	11278.2	10649.1	994.0	972.3	923.6	933	10.36 %	12.29 %	13.79 %	16.3 %

Conclusive Summary:-

• Total Revenue Annual Cr growth is higher than historical averages.
• Net Profit Annual Cr growth is stable compared to historical averages.
• ROE Annual % is growing slower than historical averages.

Valuation & Fundamental Price Target

The market expects 7 % revenue and 7.5% PAT CAGRs over FY22-FY25E along with EBITDA margin at ~18-20%

Maintain BUY with a target price of Rs525/share based on 12x Sep'24E earnings. Over the last five years, the stock has traded at an average P/E of 17.3x.

Technical breakout to Buy 

Technically the stock is a very strong candidate for a good Buy. From 18 Apr '22, Glenmark Pharma successfully formed a Cup & Handle pattern. last week after giving a strong breakout above Rs. 443

Level , sustained for 3 days at the present level of Rs. 464.7.

This good time to buy this stock at this level & buy on dips up to Rs. 412 with a stop loss of Rs. 410.

Technical Tergerget is Rs. 550.

Happy investing.