Gland Pharma shares: There is a rush to buy shares of Gland Pharma Ltd (NSE: GLAND), a company related to the pharma sector. On Wednesday the third day of trading during the week price reached at 1,850 rupees.
However, this is below the stock’s 52-week high of Rs 2,220.95. Let us tell you that the stock has fallen by 13.87% in the last three months and investors have got 15.69% returns compared to last year.
Brokerage Estimate
Meanwhile, a domestic brokerage has slightly changed its previous ‘sell’ rating on the stock and advised to reduce it in its portfolio.
The company has also announced that the price of its target was increased from 1460 rupees to 1925 rupees. But, it is still less than the current price of the stock.
From the brokerage’s target price, it can be estimated that betting on the stock can be a risky decision right now.
What Did The Brokerage Say?
The brokerage believes that Gland Pharma Ltd’s earnings have now bottomed and after a long wait, the company has made solid progress in its biologics CDMO business.
The brokerage announced that it would be monitoring how Gland is progressing with its B2C strategy in markets that are controlled. The brokerage has raised Gland’s FY25-27 EBITDA estimate by 2% due to high base business margins.
On the other hand, another brokerage has recommended ‘selling’ Gland Pharma Ltd with a target price of ₹2050 per share.
According to the brokerage, a company’s primary expansion in the US will likely come at the expense of margins. Apart from this, the brokerage has given a ‘hold’ rating on the stock but has reduced its target price to ₹1,840 per share.
Let us tell you that out of the 17 analysts covering Gland Pharma Ltd, 8 have advised ‘buy’, two have advised holding and seven have advised ‘sell’.
How Were The Quarterly Results?
Second-quarter sales and EBITDA grew 2% and declined 8% year-on-year, respectively.
EBITDA margin also missed estimates at 21.1%, driven by lower gross margins, impacted by core business product mix and operating deleverage as well as a decline in Senex’s gross margin.
Quick Fact
| Company name | Gland Pharma |
|---|---|
| Sector | Pharma |
| Current price | ₹1,850 |
| 52-week high | ₹2,220.95 |
| Last 3 months | -13.87% |
| 1-year return | 15.69% |
| Domestic brokerage rating | Reduce |
| Possible target price | ₹1,925 |
| Risk level | High |
| Business progress | Biologics CDMO |
| FY25-27 EBITDA estimate increase | 2% |
| EBITDA margin Q2 | 21.1% |
| Sales Q2 growth | 2% |
| EBITDA Q2 growth | -8% |
| Analyst recommendations | 8 buy, 2 hold, 7 sell |
| B2C strategy focus | Controlled markets |
| US expansion impact | Likely margin pressure |
| Second brokerage rating | Sell |
| Possible target price second brokerage | ₹2050 |
| Product mix impact | Lower gross margins |
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