'Buy' Glenmark Pharma Shares Maintains Motilal Oswal Despite Weak Q1 Results — Check Target Price

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Motilal Oswal Report

We increase our earnings estimates of Glenmark Pharmaceuticals Ltd. for FY26/FY27 by 3%/8%, factoring in-

1. receipt of income from deal related to ISB2001,

2. the recalibration of its domestic formulation portfolio,

3. a moderation in EU/EM businesses, and

4. regulatory constraints for the US business.

We value Glenmark Pharma on the SoTP basis (27x 12M forward earnings for base business and add net present value related to ISB2001) to arrive at a target price of Rs 2,400.

There has been considerable transformation in the business of Glenmark Pharma, with-

1. sale of API business,

2. deal with ABBVIE on ISB 2001, and

3. increased focus on profitable growth.

Subsequently, it is-

1. resetting its DF business,

2. enhancing its offering in injectables/respiratory space in US market, and

3. driving brandedled growth in EU/EM markets.

Maintain Buy.

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