Gland Pharma Ltd. share price target

We maintain our HOLD rating with a target price of Rs 1,580, implying an upside potential of 4%, valuing the company at a PE of 20x for FY27.

Gland Pharma (Gland) delivered a better-than-expected operating performance for the quarter. While revenue came in line, product mix and a higher share of milestone income led to better-than-expected margins in the base business.

we maintain our HOLD rating with a target price of 1,760, implying an upside potential of ~9.4%, valuing the company at a PE of 26x for FY26.

We have Hold on the stock

Gland Pharma (GLAND) reported a miss on its 1QFY25 earnings, largely due to lower milestone income for the quarter. Further, postponement of the off-take of products by European customers hit 1QFY25 performance.

Investing in capacity expansion through Capex reflects the company's commitment to meeting future demand and capturing new opportunities in the market. We have Hold on the stock

China remains a key geographic focus area for the company. Gland has received and launched one product this year. Recommendation: HOLD

Stability in the Base Business; Maintain HOLD

Injectable companies (HIKMA, HOSIPORA, and Aurobindo) in the US market reported sales growth of ~4% YoY. We expect similar growth for GLAND in the core markets over a longer period and high single-digit growth in India and RoW over a long-term.

Company Outlook & Guidance: Injectable companies (HIKMA, HOSIPORA, and Aurobindo) in the US market sales grew by ~4% YoY. We expect similar growth for GLAND in the core markets over a longer period and high single-digit growth in India and RoW over a long-term outlook.

We recommend a HOLD rating on the stock with a TP of Rs 1,500/share.

We expect similar growth for GLAND in core markets over a longer period and high double digits growth in India &RoW. FY23 seems to be flat revenue growth due to increased competition and moderation demand for GLAND, therefore we recommend HOLD with TP of Rs 2,100.

We believe stock trades at rich valuations of PE of 36.2x and 30.4x for FY23E and FY24E respectively. We, therefore, recommend a HOLD rating on the stock with a target price of Rs 3,300/share.

From the total injectables under shortage at the industry level, GLAND and ARBP are among the Indian companies that have the highest number of drugs as part of their respective portfolio. Even if drugs under shortage provide business opportunities for companies like SUNP/LPC/DRRD there is limited scope for supplies due to either...