Gland Pharma Q1 Results Review - Lower Milestone Income, ROW Sales Hurt Earnings: Motilal Oswal

Motilal Oswal Report

Gland Pharma Ltd. reported a miss on its Q1 FY25 earnings, largely due to lower milestone income for the quarter. Further, postponement of the off-take of products by European customers hit Q1 FY25 performance to some extent. Having said this, management maintained its outlook for the base business as well as for Cenexi.

We cut our estimates by 6%/2% for FY25/FY26 factoring-

1. maintenance shutdown at Cenexi facilities,

2. muted outlook for India segment, and

3. gradual improvement in outlook of business from China.

We value Gland Pharma at 30 times 12 months forward earnings to arrive at our target price of Rs 2,440.

Gland Pharma is implementing efforts towards:

1. reviving the biologics-based contract manufacturing business,

2. building a healthy product pipeline for the U.S. market, and

3. scaling as well as improving the profitability of Cenexi.

In fact, the favorable regulatory developments at the industry level would enable better business prospects for Gland Pharma as well. Reiterate Buy.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.