Glenmark Pharmaceuticals Limited - In line quarter - Downgrade on Valuations - 1QFY14 Results Review - ANTIQUE

Glenmark reported an in line quarter driven by broadly all round performance across geographies. The positive surprises for the quarter was strong momentum across branded markets, while the slight negative surprise for the quarter was higher R&D expenditure and Tax rates. The U.S geography marginally missed our estimate (3%) which was offset by traction in branded markets. After around 4 quarters we see Glenmark's operational performance not warranting an upward revision to our numbers and we also rule out the scope of trading multiple expansion on account of a weak cash generation cycle relative to peers. We therefore downgrade the stock to a hold.

Source : Equity Bulls

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