Buy Glenmark Life Science, target price Rs 1085: IIFL Securities

IIFL Securities has issued a buy recommendation for Glenmark Life Science, with a target price of Rs 1085, implying an upside potential of 4.8%. The current market price of Glenmark Life Science stands at Rs 1034.8. This recommendation is based on the company's strong fundamentals, including its leadership in the API manufacturing segment, expanding product portfolio, and robust R&D capabilities. The company is expected to benefit from the growing demand for APIs and its focus on niche segments.

About Glenmark Life Science:

Glenmark Life Science (GLS) is a leading Indian pharmaceutical company listed on the National Stock Exchange (NSE) of India. GLS is a subsidiary of Glenmark Pharmaceuticals, a global healthcare company. GLS focuses on the development, manufacturing, and marketing of generic formulations, active pharmaceutical ingredients (APIs), and biosimilars. The company operates in over 50 countries and has a strong presence in emerging markets. GLS's product portfolio covers a wide range of therapeutic segments, including cardiovascular, gastroenterology, respiratory and dermatology. The company is committed to providing affordable and high-quality healthcare solutions to patients worldwide.

52 Week Price Trend:

Glenmark Life Science (GLS) has witnessed a remarkable surge in its stock price, currently trading at Rs 1034.8. This represents a significant appreciation from its 52-week low of Rs 370, indicating a robust 179% gain. However, GLS has yet to surpass its 52-week high of Rs 906, suggesting potential for further growth. The company's strong performance can be attributed to its leadership in the Active Pharmaceutical Ingredients (APIs) market, as well as its growing presence in branded generics, research services, and specialty chemicals.

Stratzy's MOST Analysis:

GLS has earned a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating is based on assessments of the company's management, outlook, safety, and trend. While GLS may have areas of strength, the framework identifies potential weaknesses in these areas, warranting a rating in the "Medium" risk category.

Company's Fundamentals:

Glenmark Life Science (GLS) exhibits a moderate valuation with a Stock PE of 21, indicating it is priced at 21 times its earnings per share. Its PB Ratio of 4.56 suggests that its market value is about 4.56 times its book value. GLS offers a decent Dividend Yield of 2.53%, providing investors with a steady income stream. These ratios indicate that GLS offers a balanced mix of growth prospects and income generation capabilities, making it a potentially attractive investment for value-oriented investors.

Fundamental and Technical information provided in this blog were last updated on 21 Aug, 2024

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