Shares of Gland Pharma rallied 8 per cent to Rs 4,087.65 on the BSE in intra-day trade on Thursday after the company reported strong revenue growth of 31 per cent year-on-year (YoY) at Rs 1,154 crore for the quarter ended June 2021 (Q1FY22). It had posted a revenue of Rs 884 crore in the year-ago quarter.
The stock was trading at its highest level since listing on November 20, 2020. In the past one month, it has outperformed Sensex by surging nearly 30 per cent as against a 0.44 per cent gain in the index.
Gland Pharma said the growth in revenue was contributed from a mix of launch of new products and volume growth in existing products. The key markets — US, Canada, Europe and Australia — registered a growth of 16 per cent and accounted for 61 per cent of its revenue during Q1FY22. This performance is driven by the growth of key products like Micafungin, Enoxaparin, Heparin, Dexmedetomidine and new product launches.
India accounted for 20 per cent of Q1FY22 revenue and witnessed a 77 per cent YoY growth for the quarter. To support the domestic market requirement during the second wave of Covid-19, the company ramped up supply of essential drugs like Remdesivir and Enoxaparin, it said in a press release.
Meanwhile, the company’s profit after tax jumped 12 per cent YoY to Rs 351 crore from Rs 314 crore in the corresponding quarter of the previous fiscal. It maintained a healthy Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin of 41 per cent.
The brokerage Motilal Oswal Financial Services raised its FY22E/FY23E EPS estimate by 8 per cent each to factor in increased reach, as well as, penetration in the RoW/India markets, a better outlook for the US market, higher offtake of Remdesivir/Enoxaparin, and continued manufacturing efficiency driving better operating leverage.
The brokerage remains positive on Gland Pharma due to its superior ramp-up in existing products, healthy build-up in the complex product pipeline, ongoing investment in the vaccine/Biological space, and enough scope for inorganic growth as well.