Glenmark Pharmaceuticals - Stellar performance in India & US - Upgrade to Buy - Emkay

Reco: BUY
CMP: Rs 394
Target Price: Rs 500

- Q2FY13 Results - Revenues at Rs12.6bn (up 19%YoY), b) Adj. EBITDA at Rs2.6bn (up 37% YoY), and c) APAT at Rs1.45bn (up 16% YoY)

- India business grew 35% led by market share gains in derma, respiratory & CVS portfolio. US grew 19% in $ terms to USD78mn on back of launch of Singulair & ramp-up in OC portfolio

- Adjusted EBITDA margins improved marginally to 20.4% due to higher R&D expense (8.4% of sales in Q2'13 vs. 6.5% in Q2'12)

- On back of strong India & US business, we upgrade the stock to Buy from Hold with a revised TP of Rs500 (18x FY14 EPS of Rs25+ NPV of Rs49)

Source : Equity Bulls

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