Glenmark Pharma Growth from all the corners – Maintain Buy ::Emkay

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Glenmark Pharma

Growth from all the corners – Maintain Buy

BUY

CMP: Rs319                                        Target Price: Rs401

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n     Q2FY12 revenues were in-line with expectations. Revenues at Rs10.5bn (up 46%YoY), b) Adj. EBITDA at Rs1.9bn (up 32% YoY), and c) APAT at Rs1.25bn (up 60% YoY)

n     Revenue growth was driven by a) 36% growth in Specialty business (56% contribution to top-line) and b) 22% growth in Generics business (44% contribution to top-line)

n     Licensing income of Rs. 1.2 bn from Sanofi for GBR 500 was offset by payment of Rs1.3bn to Paul Capital

n     On account of good momentum in key business verticals, we maintain our Buy rating on the stock with a target price of Rs401 (18x FY12 Base Business EPS + Adjusted NPV of Rs45)