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Glenmark Pharmaceuticals has been included to the Dow Jones Sustainability Index in the emerging markets category for the fourth year in a row, according to the firm.
Glenmark Pharmaceuticals' stock dropped over 3% intraday to Rs 516.45 on November 16 after Morgan Stanley maintained a "underweight" rating on the stock with a target price of Rs 554.
The main business should expand in the low to mid-teens with consistent margins, but cash conversion and speciality monetisation are the key value drivers, according to the report.
Glenmark Pharmaceuticals been named to the Dow Jones Sustainability Index (DJSI) in the emerging markets category for the fourth year in a row, the business said on November 16.
Global investors, financial analysts, and other stakeholders see inclusion on this list as very prestigious, and it serves as a standard for investors that include sustainability considerations into their portfolios, according to the report.
Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals, said, "Our inclusion in the coveted Dow Jones Sustainability Indices (DJSI) for the fourth consecutive year is a validation of our commitment to sustainability and reiterates our consistent performance across all sustainability indicators."
The addition of the DJSI underscores our dedication to uphold our sustainability strategy, which incorporates Environmental, Social, and Governance (ESG) principles to benefit our operations, stakeholders, communities, and the world as a whole."
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Other brokerages have the following to say about the stock and the company:
Glenmark Pharma has been able to sustain a high run-rate of EBITDA (earnings before interest, taxes, depreciation, and amortisation). Debt will continue to decline in FY23, owing to flat research and development costs and low capex requirements. While an increase in sales in the United States would be critical for earnings growth.
Over FY21-24E, we've assumed a 12 percent compound annual growth rate (CAGR) in EPS.
Any prospective out-licensing arrangements at Ichnos' (R&D arm) will be critical in the short term for any further meaningful debt reduction. With a target price of Rs 600 per share and a 15x FY23E P/E ratio, we recommend "accumulate."
Motilal Oswal Motilal Oswal Motilal Oswal
We cut our EPS forecasts for FY22 and FY23 by 4% each, owing to a) reduced momentum in the US generics market due to product-specific difficulties, b) continued pricing pressure on the existing portfolio, c) higher raw material costs, and d) higher logistic expenses.
Over FY21–23E, we predict an 11 percent profitability CAGR, driven by a 3%/5%/11% sales CAGR in the US/DF/Europe segment.
We estimate return ratios to remain in the mid-teens as EBITDA margins remain constant. On a limited upside from present levels, we remain "neutral."
The management expects sales growth of 10-15% in FY22 and a margin of roughly 19%. Over FY21-23E, a 13 percent PAT CAGR would be aided by a healthy India and US outlook, as well as debt reduction. Maintain a "buy" rating with a target price of Rs 625 based on a 15x FY23 P/E ratio.
Glenmark Pharma was trading at Rs 518.50 on the BSE at 10:08 a.m., down Rs 17.25, or 3.22 percent.