Multibagger Glenmark Pharmaceuticals (NSE: GLENMARK) share hit a 52-week high of Rs 1694.45 during trade on Friday.
With this, it has registered a jump of 97% so far this year, while the Glenmark share price has increased by close to 122% in a year, giving investors multi-bagger returns.
The reason for the rise in the share price of Glenmark Pharmaceuticals is better results, where strong performance in India and Europe is helping profitability.
While US sales are expected to increase in some quarters.
How Was The First Quarter Result?
Glenmark Pharmaceuticals’ first-quarter net profit stood at Rs 340 crore, which is many times more than Rs 14.5 crore in the same quarter a year ago.
At the same time, its consolidated income from operations stood at Rs 3244 crore, which has increased by 6.9 percent year-on-year to Rs 3,036 crore.
European sales grew a robust 21.4% yoy to Rs 696 crore. However, India’s business grew 11.9 percent yoy to reach the sum of Rs. 1196 crore.
What Are Analysts Saying?
A top brokerage said after the results that Glenmark Pharmaceuticals’ first quarter results were driven by better traction in India (up 12 percent yoy) and the EU (up 21 percent) and lower R&D.
Glenmark’s key respiratory products could drive US growth for Glenmark during the second half of H2FY25.
Deleveraging has also made good progress. At the end of FY24, Glenmark had a net cash balance of ₹670 crore.
On July 20, 2024, the company divested the remaining 7.85 percent part of Glenmark Lifesciences, which will enhance the cash balance soon according to a brokerage.
Glenmark Pharmaceuticals Target Price
A well-known brokerage target price of Rs 1,345 does not indicate much upside.
However, a renowned brokerage says Glenmark Pharmaceuticals is set to witness an increase in its performance overall due to better approvals.
Market growth for Ryaltris, and the expansion of its product range through in-licensing. This has been set to a price target of Rs 1,850.
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