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This Pharma Stock Has An Upside Potential Of 38% Even In A Falling Market

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Omicron, the new variant of the Covid virus has turned the equity markets down globally and Indian is not an exception. However, the pharma stocks are now performing better than other company stocks, as tension about the pandemic intensifies. The brokerage firm Emkay Global has recommended investors to buy the stock of Gland Pharma with a potential upside of 38.6%, within a target period of 1 year.

 

Target Price

Target Price

The Current Market Price (CMP) of Gland Pharma is Rs. 3608. The brokerage firm, Emkay Global has estimated a Target Price for the stock at Rs. 5000. Hence the stock is expected to give a 38.6% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP)Rs. 3608
Target PriceRs. 5000
1 year returns38.60%

Company performance
 

Company performance

The company's net sales stood at Rs. 34,629 mn, in FY 2021, and Emkay Global is expecting Rs. 43,909 mn sales in FY22 and Rs. 55,798 mn sales in FY23. On the other hand, adjusted PAT was Rs. 9970 mn in FY 21; the firm is anticipating Rs. 12617 mn APAT in FY 22, and a Rs. 16101 mn APAT in FY 23. Emkay Global said, "The company retained its soft growth guidance (CAGR in mid-twenties), driven by mid to high-teens growth in the US. US growth will be driven by new products and existing products equally."

Comments by Emkay Global

Comments by Emkay Global

The firm added, "We remain positive on Gland Pharma on the back of strong growth and visibility into profitability. We estimate revenue/EBITDA/net profit CAGRs of 25%/25%/27% (FY21-24e). Strong growth should also boost Gland's industry-leading return ratios further."

About the company

About the company

Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest-growing injectable-focused companies, with a global footprint across 60 countries. They operate primarily under a business-to-business (B2B) model.

Disclaimer

Disclaimer

The above stock was picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: Motilal Oswal Recommends To 'Buy' This Pharma Stock For +30% Upside, While Equity Market Is Down For Omicron)

(Also read: High Return Pension Funds On Government-Securities (G-Sec) Scheme)

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