Gland Pharma share price jumped 20% to Rs 1612.60 and hit the upper circuit today after the pharma company reported a 41% rise in first-quarter revenue boosted by the acquisition of Cenexi. Revenue came in at Rs 1,208.6 crore in Q1FY24 against Rs 856.89 crore in the year-ago period. However, the company’s net profit fell 15.3% on-year to Rs 194.1 crore, compared to Rs 229.1 crore in the corresponding quarter of the previous year. Brokerages hold mixed views on the stock. Gland Pharma shares have gained 54% in the past one month and have fallen over 30% in the past one year.
Should you buy, sell or hold Gland Pharma stock?
Motilal Oswal: Buy
“GLAND remains on track to not only revive the base business but also to a) increase its offerings in newer markets like China, b) build a niche pipeline for regulated markets, and c) enhance the scope of synergy from the Cenexi acquisition. Reiterate BUY.”
InCred Equities: Hold – Target Price: Rs 1431
“Gland Pharma’s business has high operating leverage, and margins usually follow revenue recovery. FY24F-25F margins will also be influenced by whether Gland Pharma decides to aggressively bid for Heparin tenders or not as well as on when its Enoxaparin channel inventory depletes. We bake in recovery in 2HFY24F and retain a HOLD rating on the stock with a higher target price of Rs 1,431 (Rs 1,056 earlier). Faster-than-expected recovery is a key upside risk while a delayed recovery is a key downside risk.”