Brokerages’ views mixed on Glenmark Pharma | Economic Times

Mumbai: Brokerages have a mixed view on Glenmark Pharma after its fourth quarter results. While the majority of the brokerages have maintained their ratings and increased price targets significantly, some like CLSA, JP Morgan, ICICI Securities and HSBC have downgraded their ratings on the stock.BofA Securities increased target price to Rs 535 and said debt reduction, divestment of non-core assets, control in expenses, capex and lower R&D expenses will drive further re-rating of the stock currently trading at bottom valuations.However, global brokerage CLSA cut its FY22 EPS estimate by 4 per cent and target price to Rs 420 from Rs 440 per share after March-quarter earnings citing flat earnings outlook for FY21 and limited scope for debt reduction.Shares of Glenmark declined 3.7 per cent to close at Rs 450 on Tuesday.76721291Glenmark’s March-quarter performance was above estimates with higher domestic sales and visible efforts towards cost control. The company’s revenues grew by 8 per cent over March 2019 quarter, Ebitda margin improved 160 bps and profits increased 13.3 per cent.Shares of Glenmark rallied 26 per cent in the past one month especially after the company announced the launch of antiviral drug Favipiravir for the treatment of mild-to-moderate Covid-19 patients on June 20.Considering the recent rally, ICICI Securities downgraded the stock to ‘add’ rating from ‘buy’ with a revised target price of Rs 500 share.Domestic brokerage Emkay Global while retaining its buy rating said any meaningful upside would depend on a pick-up in US business as well as clarity of debt reduction.