Glenmark Pharma’s Better Business Mix, Operating Leverage Drive Q3 Earnings: Motilal Oswal
Brightly coloured pharmaceutical medication. (Photographer: Chris Ratcliffe/Bloomberg)

Glenmark Pharma’s Better Business Mix, Operating Leverage Drive Q3 Earnings: Motilal Oswal

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Motilal Oswal Report

Glenmark Pharmaceuticals Ltd. delivered in-line sales for Q3 FY21. However, earnings were better than expected, led by the domestic formulation/active pharmaceutical ingredient segment and controlled opex.

The company is confident of sustaining the profitability over the next 12-24 months, led by a better outlook in DF/U.S./API and an ongoing cost rationalisation exercise.

We raise our earnings per share estimate for FY21/FY22/FY23 by 4%/8%/6%, factoring in -

  1. new launches in DF/U.S.,
  2. stable price erosion in the U.S. base business,
  3. an improved outlook in the API segment, and
  4. benefits from higher operating leverage.

Click on the attachment to read the full report:

Motilal Oswal Glenmark Q3FY21 Result Update.pdf

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