Glenmark Pharma - Mahurat Picks 2012 - ICICIdirect

(Buying Range: Rs.430-Rs.410)

The company is the one of the few generic companies, which enjoys a substantial foothold in therapies like Derma and oral contraceptives in the US market, which has caused strong CAGR of 21% between FY08 and FY12 in the US. We believe the growth story will only get better on the back of robust pipeline of 81 ANDAs approved and 43 ANDAs pending for approval from USFDA. The 43 pending applications include 19 are Para IV filings

As per latest AIOCD data, Glenmark is the second largest player in the dermatology space after GSK Pharma in the domestic market with a market share of 11%. It also enjoys decent market share in therapies like respiratory and cardiac. The company keeps on introducing at least 20 new products and line extensions in the domestic market to strengthen the market share. Sales in the domestic market grew at a CAGR of 18% between FY08 and FY12

We expect sales, EBITDA and profit to grow at a CAGR of 19%, 18% and 28%, respectively, between FY12 and FY14E. The company is currently trading at ~21x FY13E EPS of Rs. 20.7 and ~15x FY14E EPS of Rs. 27.9.

Source : Equity Bulls

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