Gland Pharma Ltd. share price target

We believe stock trades at rich valuations of PE of 38.4x and 32.4x for FY23E and FY24E respectively. We, therefore, recommend a HOLD rating on the stock with a target price of Rs 3,575/share.

High competition in injectables generic and increase in raw material prices may impact the company's growth and margins in the upcoming quarters. Furthermore, we believe valuations are rich and thus recommend a HOLD with a target price of Rs 4,000/share

Gland Pharma (GLAND) delivered in-line 2QFY22 results, led by a strong revenue growth across all geographies, despite increasing cost pressure on account of supply disruptions. With vaccine batch validation completed for Sputnik Lite and 2nd dose, GLAND awaits clarity on the lifting of export restrictions by the government. We lower our EPS estimate by 4%/2% for FY22/FY23, mainly to factor in some delay in commercialization of the Sputnik contract. We remain positive on GLAND based on its a) complex product filings including peptides, longacting injectables for regulated markets, b) commercialization of the Sputnik...

We expect revenue and PAT CAGR of 18.2% and 19.7% respectively over FY21-FY24E and recommend a HOLD with TP of Rs 4,100, implying an upside of 3% from CMP.

We expect Gland Pharma is well placed to grab upcoming opportunities in the injectables space in the US market, and therefore recommend HOLD with a TP of Rs 4,100/share.

GLAND's 1QFY22 performance was ahead of our expectation, led by robust revenue growth across all geographies. It is progressing well on scaling up manufacturing of the COVID-19 vaccine. It is concurrently developing products/undertaking capex related to complex product as well as enhancing its geographical diversification. We raise our FY22E/FY23E EPS estimate by 8% each to factor in: a) increased reach as well as penetration in the RoW/India markets, b) better outlook for the US market, c) higher offtake of Remdesivir/Enoxaparin, and d)...

We believe Gland Pharma is well placed to grab upcoming opportunities in the injectables space in the US market and therefore recommend a "BUY" with TP of INR 3,200/share.

The Sputnik-V vaccine has been given Emergency Use Authorization by the Indian govt. The vaccine has a proven efficacy rate of 91.5 percent, which is the highest after the candidates of Moderna Inc and Pfizer-BioNTech. The cost of Sputnik V could be in the range of $3.5 per dose.

We recommend BUY on the stock with a target price of Rs 2900.

Gland Pharma Ltd - IPO Note Issue Open: Nov 09 Nov 11, 2020 Price Band: Rs. 1490 1500 *Issue Size: 43,196,968 eq shares (Fresh Issue of 8,333,333 eq sh + Offer for sale of 34,863,635 eq sh) Issue Size: Rs. 6436.3 6479.5 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Face Value: Rs 1 Book value: Rs 255.79 (June 30, 2020) Bid size: - 10 equity shares and in multiples thereof 100% Book built Issue Capital Structure: Pre Issue Equity: Rs. 15.49 cr Post issue Equity: Rs. 16.33 cr Listing: BSE & NSE