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Glenmark Pharmaceuticals Ltd Stock Analysis

Mid Cap
Evaluated by 4872 users | BSE: 532296 | NSE: GLENMARK |
Pharmaceuticals & Drugs

Glenmark Pharmaceuticals Ltd. (GPL) was incorporated in 1977. It was founded with a vision to emerge as a leading integrated research-based, global pharmaceutical company. Its branded generics business has a significant presence in markets across emerging...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Glenmark Pharmaceuticals Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.28%12.73%14.78%11.53%8%13.32%16.38%10.06%9.24%8.78%
Value Creation Index 0.020.080.23-0.04-0.330.110.39-0.15-0.22-0.26
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,9494,0214,9695,9456,6817,5629,0799,0749,86510,641
Y-o-Y Gr. Rt.-36.3%23.6%19.6%12.4%13.2%20.1%-0.1%8.7%7.9%
Adjusted EPS (Rs.) 13.3917.0323.7520.2412.5526.7342.9626.8324.2223.29
Y-o-Y Gr. Rt.-27.2%39.5%-14.8%-38%113%60.7%-37.6%-9.7%-3.8%
Book Value per Share (Rs.) 75.3888.77102.01109.9965.74128.59159.16182.62198.27214.65
Adjusted Net Profit 3624606435493417541,212757683657
Net Op. Cash Flow (Rs. Cr.) 9318046488544823456571,6481,3241,392
Debt to Cash Flow from Ops 2.272.794.273.837.8911.567.192.823.363.5
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Glenmark Pharmaceuticals Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 15.3%9.8%5.4%7.9%
Adjusted EPS 6.3%13.2%-18.5%-3.8%
Book Value per Share 12.326.710.58.3
Share Price 5.2% -12% -2.7% 53.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.4820.7424.9119.1114.2927.8629.8515.6812.6911.26
Operating Profit Margin (%) 20.0817.7721.118.5118.1819.2123.1917.8216.0715.97
Net Profit Margin (%) 12.4311.5513.119.295.19.9713.358.346.936.18
Debt to Equity 1.030.9311.12.131.11.050.90.80.8
Working Capital Days 294231213219244242219236217201
Cash Conversion Cycle 124729686907069826656
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 46.63%
Institutions 30.25%
Non-Institutions 23.13%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Glenmark Pharmaceuticals Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Glenmark Pharmaceuticals Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Glenmark Pharmaceuticals Ltd's performance infers:

Glenmark Pharmaceuticals Ltd earnings have grown by 13.2%, whereas share price has depreciated -12% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Glenmark Pharmaceuticals Ltd share prices over the last 10 years. Here is what we found out:

Glenmark Pharmaceuticals Ltd share price has depreciated 3% annually over the past ten years.

Glenmark Pharmaceuticals Ltd. (GPL) was incorporated in 1977. It was founded with a vision to emerge as a leading integrated research-based, global pharmaceutical company. Its branded generics business has a significant presence in markets across emerging economies including India. It is a global research-led pharmaceutical company with presence across Generics, Specialty and OTC business with operations in many countries. Glenmark’s key therapy focus

Glenmark Pharmaceuticals Ltd. (GPL) was incorporated in 1977. It was founded with a vision to emerge as a leading integrated research-based, global pharmaceutical company. Its branded generics business has a significant presence in markets across emerging economies including India. It is a global research-led pharmaceutical company with presence across Generics, Specialty and OTC business with operations in many countries. Glenmark’s key therapy focus areas globally are respiratory, dermatology and oncology. Its API business sells products in many countries including the US, various countries in the EU, South America and India.

India is the largest market in terms of revenue for the organization. The formulations business has five manufacturing facilities; three in India and two overseas. These facilities are approved by several regulatory bodies. The facility at Baddi, Himachal Pradesh, India is also approved by MHRA and USFDA for semi-solids. The overseas facilities are situated in Brazil and the Czech Republic. While the manufacturing facility in Brazil services requirements of the Latin American region, the Czech facility services requirements of the Central Eastern Europe region. Glenmark has also invested in a dedicated R&D facility for formulations development. This R&D centre, situated near Nashik, India is engaged in developing specialty/ branded formulations for global markets.

Business area of the company

The Company is engaged in the development of new chemical entities (NCEs) and new biological entities (NBEs). Specialty Business: Drug Discovery: Glenmark’s ground-breaking drug discovery effort is primarily focused in the areas of inflammation [asthma/COPD, rheumatoid arthritis etc.], metabolic disorders [diabetes, obesity, etc.] and pain [neuropathic pain and inflammatory pain]. Specialty Business: Formulations Business: Glenmark’s formulations business is currently organized many regions - India, Latin America, Central Eastern Europe and Semi Regulated Markets of Africa/Asia/CIS. The formulations business focuses on therapeutic areas viz. dermatology, anti-infective, respiratory, cardiac, diabetes, gynecology, CNS, and oncology.

Awards

  • It was conferred with the Pharmaexcil Gold Award for New Chemical Entities 2015.
  • SCRIP crowned Glenmark as the ‘Best Pharma Company in Emerging markets’ and ‘Best Overall Pipline’ at SCRIP Awards 2011 in London. 
  • Swiss Ambassador's award for Exceptional Innovation - 2012.
  • It received the Bombay Chamber of Commerce and Industry Civic Award 2014. 
  • It was conferred with the prestigious Golden Peacock Management Award - 2015 for its Environment Sustainability initiatives at the Goa manufacturing facility.

Milestone

2010

  • Glenmark Pharmaceuticals has entered into a settlement and license agreement with Sepracor Inc to market generic Eszopiclone tablets.

2012

  • Forest Laboratories and Glenmark Sign Development Agreement for Worldwide Collaboration on Novel Agents to treat Chronic Inflammatory Conditions.

2014 

  • Glenmark entered into an out-licensing deal with Forest Labs for its novel molecule targeting mPGES-1 Inhibitor.

2015

  • Glenmark announced the Strategic Development & Licensing Agreement with Celon, Poland for generic Seretide Accuhaler in Europe. In the same year, Glenmark received approval for generic Seretide in Russia.

2016 

  • Glenmark launched ezetimibe, the first and only generic version of Zetia in the United States for the treatment of high cholesterol.

2019

  • Glenmark Pharmaceuticals and Mankind Pharmaceuticals have inked a sub-licensing agreement to co-market sodium glucose co-transporter-2 (SGLT2) inhibitor, Remogliflozin Etabonate (Remogliflozin) in India.
  • Glenmark Pharmaceuticals’ partner -- Seqirus Pty (Seqirus) has received marketing approval for Ryaltris from the Therapeutic Goods Administration (TGA), Australia.

2020

  • Glenmark Pharmaceuticals has launched NINDANIB (Nintedanib 100 and 150 mg capsules) for the treatment of pulmonary fibrosis in India.
  • Glenmark Pharmaceuticals has launched the world’s first hypertension awareness symbol, in collaboration with Association of Physicians of India (API) and Hypertension Society of India (HSI). 
  • Glenmark Pharmaceuticals has launched of a Single Inhaler Triple Therapy AIRZ-FF.
  • Glenmark Pharmaceuticals has entered into an agreement with Hindustan Unilever (HUL) for divestment of its VWash brand and other extensions.
  • Glenmark Pharmaceuticals’ Swiss subsidiary, Glenmark Specialty S.A., has entered into an exclusive licensing agreement with Hikma Pharmaceuticals PLC (Hikma) for commercializing its novel nasal spray Ryaltris in the US.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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