Gland Pharma shares hit 52-week high; jump 7% despite market sell-off | Will rally continue after 93% YTD rise?
Gland Pharma share price jumped over 6.73%, hitting a 52-week high in Monday's trading session, defying the downward rally in the Indian stock market. The pharma stock opened in the green at ₹3,147 apiece on NSE today, as compared to the previous close of ₹3,132.80 on Sunday and touched an intraday high of ₹3,352 on 9 November.
Meanwhile, Indian benchmark indices Sensex and Nifty opened lower on Monday, weighed down by selling pressure in heavyweight IT stocks and profit-booking following the recent sharp rally in the equity market. The 30-share BSE Sensex fell 93.95 points to 80,919.19 in early trade, while the NSE Nifty 50 declined 30 points to 24,968.80.
Drugmaker Gland Pharma, on Friday, November 6, reported a 58.2% year-on-year (YoY) jump in net profit to ₹291 crore for the second quarter of FY27, compared with ₹184 crore in the corresponding quarter of the previous financial year.
The company's revenue increased 23.3% YoY to ₹1,834 crore from ₹1,487 crore a year earlier. EBITDA surged 54.1% to ₹484 crore, against ₹314 crore in the year-ago quarter. Consequently, the EBITDA margin improved to 26.4% from 21.1%.
On an adjusted basis, quarterly EBITDA grew 50% year-on-year, with the adjusted EBITDA margin standing at 27%. The company's profit after tax (PAT) margin also expanded by approximately 350 basis points during the quarter.
Gland Pharma's research and development (R&D) expenditure stood at ₹107.7 crore during the quarter, accounting for 6% of consolidated revenue, compared with ₹81.7 crore in the corresponding period last year. The investments were primarily focused on developing complex products and expanding the company's filing pipeline.
Gland Pharma shares have delivered strong returns across multiple time frames, gaining 8.43% over the past week and 8.60% in the last one month. The stock has significantly outperformed over the longer term, surging 93.87% year-to-date (YTD) and 78.48% over the past one year.
However, the stock's five-year performance remains negative, with an 8.26% decline, indicating that the recent rally has helped it recover from earlier losses. The stock's three-year return stands at 106.18%, highlighting its strong medium-term recovery.
Brokerage firm Motilal Oswal has maintained its ‘buy’ rating on the pharma stock with a target price of ₹3,690, seeing an upside potential up to 16%.
“Gland continues to implement efforts toward improving profitability of the Cenexi segment through increasing utilization, cost rationalization, and filling capacity with higher value work. The benefit is yet to accrue from these efforts. Having said this, we expect 14%/20%/21% revenue/EBITDA/PAT CAGR over FY26-28, led by higher volume from new products and increased off-take of existing products. Reiterate BUY,” the firm said.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that Gland Pharma looks positive from a technical perspective and investors can consider holding the stock with a stop-loss at ₹3,165.
“The stock has potential to move towards the targets of ₹3,415, ₹3,650 and ₹3,675+, respectively. Investors should maintain the stop-loss to manage downside risk while tracking the stock's momentum,” Ojha added.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsGland Pharma shares hit 52-week high; jump 7% despite market sell-off | Will rally continue after 93% YTD rise?
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