Complex product launches and Specialty businesses to drive growth
Glenmark is an India-based pharmaceutical company with commercial presence in more than 60 countries across the globe. It manufactures and markets generic formulation products & active pharmaceutical ingredients (API). The company has been focusing on key areas including inflammation (asthma/COPD, rheumatoid arthritis etc.) and pain (neuropathic pain and inflammatory pain). Further, several molecules of the company are in various stages of clinical development.
View & Valuvation
We expect revenue and PAT to grow at a CAGR of 15.1% and 21.4% respectively over FY16-19E. Further, we expect EBITDA margin to expand by 160bps to 22.4% over FY16-19E on account of on account of a) exclusivity (up to 180 days) on certain product launches including Zetia b) shifting of portfolio mix towards high-margin niche products Hence, we recommend Glenmark with ‘BUY’ rating with a TP of Rs1039 based on 19.5x FY19E PE.
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.