Shares of Gland Pharma rallied 8 per cent to Rs 4,087.65 on the BSE in intra-day commerce on Thursday after the corporate reported robust income development of 31 per cent year-on-year (YoY) at Rs 1,154 crore for the quarter ended June 2021 (Q1FY22). It had posted a income of Rs 884 crore within the year-ago quarter.
The inventory was buying and selling at its highest stage since itemizing on November 20, 2020. In the previous one month, it has outperformed Sensex by surging practically 30 per cent as in opposition to a 0.44 per cent acquire within the index.
Gland Pharma stated the expansion in income was contributed from a mixture of launch of latest merchandise and quantity development in present merchandise. The key markets — US, Canada, Europe and Australia — registered a development of 16 per cent and accounted for 61 per cent of its income throughout Q1FY22. This efficiency is pushed by the expansion of key merchandise like Micafungin, Enoxaparin, Heparin, Dexmedetomidine and new product launches.
India accounted for 20 per cent of Q1FY22 income and witnessed a 77 per cent YoY development for the quarter. To help the home market requirement through the second wave of Covid-19, the corporate ramped up provide of important medication like Remdesivir and Enoxaparin, it stated in a press launch.
Meanwhile, the corporate’s revenue after tax jumped 12 per cent YoY to Rs 351 crore from Rs 314 crore within the corresponding quarter of the earlier fiscal. It maintained a wholesome Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortisation) margin of 41 per cent.
The brokerage Motilal Oswal Financial Services raised its FY22E/FY23E EPS estimate by 8 per cent every to consider elevated attain, in addition to, penetration within the RoW/India markets, a greater outlook for the US market, larger offtake of Remdesivir/Enoxaparin, and continued manufacturing effectivity driving higher working leverage.
The brokerage stays optimistic on Gland Pharma as a result of its superior ramp-up in present merchandise, wholesome build-up within the advanced product pipeline, ongoing funding within the vaccine/Biological area, and sufficient scope for inorganic development as nicely.