Following this, the global brokerage firm Investec initiated a ‘fast long’ on the stock with a target price of Rs 1,900, indicating a 17% upside potential.
“This is to inform you that the United States Food & Drug Administration (USFDA) completed a Good Manufacturing Practice (GMP) inspection at the Company’s formulation manufacturing facility based out of Chhatrapati Sambhaji Nagar (Aurangabad), India. The inspection was conducted from 9th September to 20th September, 2024. The inspection closed with no observation,” the company on Saturday informed via an exchange filing.
Post this, the global brokerage firm said that it expects both earnings momentum and importantly cash flow generation to continue. Additionally, it sees Glenmark as more of an India / RoW play as these two contribute >70% of its EBITDA.
“The company’s Aurangabad facility is getting zero observations, which does provide a near-term trigger as this is a critical facility,” said Investec in its note.
Also read: Vodafone Idea shares surge 10% after $3.6 billion deal with Nokia, Ericsson, and Samsung
Meanwhile the shares of Glenmark Pharma have already risen 115% in the last one year while witnessing multibagger gains of 101.5% in the current year so far. In the last 6 months, the stock has increased by 81.4%.
Technically, the stock is placed well above all its significant exponential moving averages and is oscillating near the 46.5 mark on the relative strength indicator (RSI), which is a mid range level on the indicator.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)