Home / Business / Glenmark Pharma share price ends 22% higher after CLSA upgraded stock to buy

Glenmark Pharma share price ends 22% higher after CLSA upgraded stock to buy

The Glenmark Pharma share price jumped 22 percent on November 18 after global research firm CLSA had upgraded the shares to buy from selling and raised the target to Rs 410 from Rs 350 per share.

Glenmark's Q2 FY20 results were ahead of estimates While all geographies witnessed YoY growth for the first time in over three years, the company said.

The US sales momentum is expected to remain strong while India's business should continue to grow above the industry level. CLSA has also increased FY20-22 EPS by 3 percent and 22 percent.

It is unlikely that high R&D expenditure in the medium term will significantly reduce debt. Leveraged balance sheet is still a problem with 1

1x FY21EPS looking attractive, the company added.

Glenmark Pharma reported a consolidated net profit of Rs 255.54 crore for the second quarter ended in September. The company posted a net profit of Rs 414 crore in the July-September quarter a year ago, Glenmark Pharmaceuticals said in a BSE filing. The company's net sales amounted to 2,763.73 crore, an increase of 8.81 per cent, during the period under review, compared with Rs 2,539.85 crore in the corresponding quarter of the previous tax.

"The net result is not comparable to the previous corresponding quarter on account of an exceptional income of Rs 167.18 crore recorded during the second quarter of last financial year," said a company statement.

Commenting on the results, Glenmark Pharmaceuticals chairman and CEO Glenn Saldanha said: "We have recovered strongly in the second quarter, with most of our operations showing good growth. India's business has continued to see strong growth while the US Sales have increased quarter after quarter in succession, and the Latam business has also recovered in the second quarter. "

Glenmark Pharma was quoting at Rs 366.00, up Rs 64.80, or 21.51 percent. intraday high of Rs 369.60 and an intraday low of Rs 308. Get access to India's fastest-growing financial subscription services Moneycontrol Pro for as little as Rs 599. For the first year, use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out Moneycontrol webpl ats or mobile app!

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