Glenmark Pharma Q4FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 26, 2016, midnight


SYNOPSIS

  • Glenmark Pharmaceuticals Ltd is a research-driven, global, integrated pharmaceutical organization headquartered at Mumbai, India.
  • During Q4 FY17, consolidated net profit jumps to Rs. 1837.61 mn from Rs. 1487.99 mn in Q4 FY16, an increase of 23.50%.
  • Consolidated revenue for the quarter increased by 6.52% to Rs. 24571.83 mn as against Rs. 23066.76 mn, when compared with the prior year period.
  • During Q4 FY17, consolidated EBIDTA is Rs. 3925.56 mn as against Rs. 3151.52 mn in the corresponding period of the previous year.
  • During Q4 FY17, consolidated PBT stood at Rs. 1730.33 mn as against Rs. 2092.41 mn in Q4 FY16.
  • EPS of the company stood at Rs. 6.51 a share during the quarter, as against Rs. 5.27 per share over previous year period.
  • Glenmark Pharmaceuticals Ltd has recommended Dividend @ 200% i.e. Rs. 2/- per share (face value of Re. 1/- each) on the Equity Share Capital of the Company for the financial year 2016 - 2017.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 34% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 714.10, the stock P/E ratio is at 15.06 x FY18E and 13.00 x FY19E respectively.
  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 47.43 and Rs. 54.91 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 34% over 2016 to 2019E respectively
  • On the basis of EV/EBITDA, the stock trades at 10.27 x for FY18E and 8.83 x for FY19E.
  • Price to Book Value of the stock is expected to be at 3.88 x and 3.21 x for FY18E and FY19E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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