Gland Pharma Shares Rise The Most In Nine Months As Profit More Than Doubles
Motilal Oswal has cut its earnings estimates by 11%/9% for FY25/FY26, factoring in the extended operational challenges, slower progress in the China business, and a higher effective tax rate.
Shares of Gland Pharma Ltd. rose to its highest level in three months on Thursday after its profit jumped more than doubled in the quarter ended March 2024, but missed analysts' estimates.
Gland Pharma Q4 Results: Highlights (Consolidated, YoY)
Revenue up 96% to Rs 1,537 crore. (Bloomberg estimate: Rs 1,531.73 crore).
Ebitda up 2.13 times to Rs 359 crore. (Bloomberg estimate: Rs 361.98 crore).
Margin at 23.3% versus 21.5% (Bloomberg estimate: 23.60%).
Net profit up 2.4 times to Rs 192 crore. (Bloomberg estimate: Rs 238.83 crore).
"The profit jump was driven by volume growth in key injectables and new product launches," the company said in its investor presentation. It added that gross margin during the quarter improved due to a better product mix, while Ebitda benefitted from higher operating leverage.
Axis Securities has raised the stock's target to Rs 1,950 per share from Rs 1,825 earlier, while maintaining a 'hold' rating. Motilal Oswal has lowered the target to Rs 2,070 from Rs 2,240 but has given a 'buy' rating.
Motilal Oswal has cut its earnings estimates by 11%/9% for FY25/FY26, factoring in the extended operational challenges, slower progress in the China business, and a higher effective tax rate.
Axis Securities reported that a one-time loss due to increased inventory and manpower overheads in the last quarter impacted the margins of the acquired company Cenexi. "Maintaining an annual revenue growth rate of around 14–15% appears to be the company’s target, considering the expanded base resulting from recent initiatives," it said.
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Shares of the company rose as much as 10.98%, the highest single-day jump in nearly nine-months, to Rs 1,989.90 apiece. It pared gains to trade 5% higher at Rs 1,881.40 apiece as of 1:11 p.m. This compares to a 1% advance in the NSE Nifty 50 Index.
The stock has fallen 2.26% on a year-to-date basis and 958% in the last 12 months. Total traded volume so far in the day stood at 9.7 times its 30-day average. The relative strength index was at 69.15.
Out of the 19 analysts tracking the company, 11 maintain a 'buy' rating, two recommend a 'hold,' and six suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.9%.
