The share of this mid-cap Pharma company jumped around 5 percent despite reporting a 20 percent downfall of Rs. 19.41 crores in net profit YoY. In 6 months, the share has given 18 percent returns to its shareholders.
With a market capitalization of Rs. 25,938 crores, the share of Gland Pharma Ltd started its trading session on Tuesday at a higher note of Rs. 1,645. The share hit a high of Rs. 1,676 making a gain of around 5 percent and currently trading at Rs. 1,654 apiece.
The pharma company on 6th November announced its June – September results. The company’s revenue increased by 14 percent from Rs. 1,373 crores in the June quarter to Rs. 1,208 crores in the September quarter. Furthermore, the net profit marginally increased by 0.15 percent from Rs. 194.1 crores to Rs. 194.8 crores during the same period.
Comparing these metrics on a YoY basis, the revenue accelerated by 32 percent from Rs. 1,044 crores during Q2 FY23 to Rs. 1,373 crores in Q2 FY24. On a contrasting note, net profits declined by 20 percent from Rs. 241.24 crores to Rs. 194.08 crores during the same timeframe.
Despite announcing disappointing results the share jumped 5 percent after several brokers started coverage with a decent upside potential.
According to the reports, Jefferies, one of the well-known Investment Banks, has given a ‘Buy’ target on the company’s stock with a target price of Rs. 2,135 indicating an upside movement of around 30 percent.
The analysts mentioned that Gland Pharma’s core business is back on track with a stellar performance. In addition to this, the analysts believe that the pharma company’s earnings have bottomed out and are on track to recover with stable pricing and volume-led growth across geographies.
Coming onto the important financial ratios, the return on equity was at 10.34 percent during FY22-23, and the return on capital employed was recorded at 14.04 percent in the same time horizon.
According to the latest shareholding pattern, Promoters of the company have 56.86 stakes in the company, the Public or Retail Investors have 14.78 percent shares in the company, DIIs have a considerable stake of 22.45 percent and the remaining 4.8 percent are with FIIs.
Headquartered in Hyderabad, Gland Pharma Ltd is one of the subsidiary companies of Shanghai Fosun Pharma. The company has expertise in sterile injectables, oncology, and ophthalmic segments, and focuses on complex injectables.
Written By Vaibhav Patil
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