Gland Pharma's Remarkable Surge: Analysts Predict Continued Growth After Strong Q2

In a recent development in the business sector, Gland Pharma's shares witnessed an impressive surge, marking the most substantial gain in two months. This uptick followed a series of upbeat assessments from financial analysts who foresee further upside potential after the company's robust performance in the second quarter.

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In a recent development in the business sector, Gland Pharma's shares witnessed an impressive surge, marking the most substantial gain in two months. This uptick followed a series of upbeat assessments from financial analysts who foresee further upside potential after the company's robust performance in the second quarter.

Gland Pharma's stocks soared by over 5% on a Tuesday, as numerous analysts either upgraded their recommendations or raised their respective price targets following the drugmaker's September quarter results. Among these experts, Jefferies, Nomura, and Goldman Sachs played prominent roles in shaping the company's current market outlook.

For the said quarter, Gland Pharma reported revenue amounting to ₹1,373.4 crore, closely aligning with market expectations of ₹1,361 crore. Impressively, the company's margin not only met expectations but exceeded them. One of the primary driving factors behind this positive performance was the substantial increase in revenue for Gland Pharma's US operations. These figures showed a 22% surge from the preceding June quarter and a remarkable 9% growth compared to the same period in the previous year.

According to Jefferies, the success of the US business segment can be attributed to the introduction of new products and the maintenance of stable pricing strategies. Additionally, the contribution stemming from the Cenexi acquisition, coupled with a promising outlook for the US market, is expected to fuel operating leverage benefits for Gland Pharma.

Jefferies boosted its operating profit forecasts for the financial years 2025 and 2026 by 6% each, citing robust margins as the driving force. The brokerage upheld its "buy" recommendation on Gland Pharma and increased the price target from ₹1,640 to ₹1,800.

Nomura also joined the optimistic chorus by upgrading Gland Pharma from "reduce" to "neutral" and elevating its price target from ₹1,157 to ₹1,570. They emphasized that earnings were propelled by a US business rebound and cost efficiency improvements, warranting a reevaluation of Gland's valuation multiples.

Goldman Sachs, echoing the positive sentiment, maintained its "buy" rating on Gland Pharma and revised the price target from ₹1,685 to ₹1,750. They specifically noted the contributions from the core US market and the Cenexi acquisition to the company's impressive performance in the September quarter.

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This bullish sentiment is further validated by the collective opinion of 20 analysts closely tracking Gland Pharma. Out of this group, 12 analysts recommend a "buy," three suggest a "hold," and five propose a "sell" rating.

Furthermore, it is worth noting that Gland Pharma recently saw the conclusion of its shareholder lock-in period, releasing 3.28 crore shares, equivalent to 20% of its outstanding equity, for trading.

As of the latest update, Gland Pharma's shares are trading 5.5% higher, reaching ₹1,661.15. This surge marks the most significant single-day gain for the stock since August 31, and the stock has also demonstrated a 5.5% increase in value since the beginning of 2023.