Gland Pharma: New product successes in FY22 key to future opportunities
While the US market is still expected to clock 18-20 per cent growth for Gland Pharma in FY22, the company’s foray into non-US markets would accelerate growth in the medium term
Gland Pharma Limited | The share price has surged 124 percent to 3,367.05 on July 1, 2021, from its issue price of Rs 1,500. It was listed on exchanges on November 20, 2020, with an issue size of Rs 6,480 crore.
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Gland Pharma (CMP: Rs 3,795; M Cap: Rs 62,325 crore) posted yet another strong set of numbers, aided by geographical diversification strategy, partially offset by a dip in margins. Diversification under way Q1FY22 sales growth of 31 per cent was backed by a 51 per cent growth in the rest of the world (RoW, 19 per cent of sales) and 77 per cent growth in domestic market (20 percent of sales). This is broadly in line with the strategy of diversifying…