Glenmark Pharma - US launches and cash generation remain key triggers - Kotak

We believe the recent stock correction in Glenmark offers favorable risk-reward - limited downside while potential US recovery will drive upside. In addition, the currency tailwind will allow Glenmark to normalize its balance sheet while delivering stable P&L growth - which has been our key concern. We believe concerns about US Dollar debt are manageable, given actual debt repayment in the near term is limited. We upgrade Glenmark to ADD (from REDUCE) with TP of Rs. 570 (from Rs. 535) we value the stock at 18X one-year forward EPS.

Source : Equity Bulls

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