Gland Pharma share price hits new 52-week high on Q4 results; stock more-than-doubles from IPO price

Gland Pharma share price surged as high as 9.6 per cent to a fresh 52-week high of Rs 3,061 apiece in intraday on BSE, after the company posted a 34 per cent on-year rise in consolidated net profit to Rs 260.4 crore in Jan-Mar quarter of FY21. Gland Pharma shares made a market debut in November 2020 and were listed at Rs 1,701, as against the IPO price of Rs 1,500. The stock has zoomed 80 per cent from the listing price, while it has more than doubled from the issue price. After a stellar IPO, strong sectoral buying in pharma with steady Q4 results have led to Gland pharma crossing Rs 3,000 to an all-time high. “Technically, daily closing above 3055 should lead to a higher target of 3300 in the coming days. 2750 remains strong support,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told The Outlooker Online.

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For the financial year 2020-21, Gland Pharma witnessed revenue growth of 32 per cent and net profit growth of 29 per cent as compared to the previous year. The company continued to maintain a healthy margin profile with EBITDA margin at 40 per cent and PAT margin at 28 per cent. “Our new vaccine business is expected to accelerate our long-term strategy of entering into biosimilar space,” said Srinivas Sadu, MD & CEO of Gland Pharma. In the domestic markets, the company has ramped up Remdesivir supply and maintained a sufficient supply of Enoxaparin to support the requirement of COVID patients.

So far in intraday, around 21,000 stocks have traded on BSE, while a total of 6.12 lakh shares have exchanged hands on NSE. Analysts at Motilal Oswal Financial Services have given a ‘buy’ rating to the stock, with a target price of Rs 3,280, a rally of 17.4 per cent from the last close. Analysts remain positive on Gland Pharma stock on the back of niche pipeline, enhanced offerings/adding newer geographies in the RoW segment, operating cost efficiency, consistent compliance, and enough war chest to tap inorganic opportunities.

(The stock recommendations in this story are by the respective research and brokerage firm. The Outlooker Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)