Shares of Gland Pharma rose over 12% amid a weak sentiment in the broader market today. Gland Pharma stock zoomed 12.49% intraday to Rs 1320.80 against the previous close of Rs 1174.10 on BSE. It was among the top gainers on BSE today. Gland Pharma stock has lost 62.35% in a year and fallen 17% this year. The stock has gained after two days of consecutive fall.
Total 1.06 lakh shares of the firm changed hands amounting to a turnover of Rs 13.32 crore on BSE. Volume of shares traded today was the highest after January 25. On January 25 this year, 2.21 lakh shares of the firm changed hands amounting to a turnover of Rs 30.37 crore on BSE.
Check Share Price Live: Gland Pharma
The market cap of the firm rose to Rs 21,560 crore. The stock hit its 52-week high of Rs 3,599 on February 7, 2022 and a 52-week low of Rs 1169.75 on February 6, 2023.With today’s rally, the stock has surged 12.91% from its 52-week low. Later, the stock ended 11.47% higher at Rs 1308.80 on BSE.
In terms of technicals, the relative strength index (RSI) of Gland Pharma stands at 16.1, signaling it’s heavily oversold. Gland Pharma stock has a one-year beta of 0.4, indicating very low volatility during the period.
Shares of Gland Pharma are trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
Shares of the firm have plunged 14.75% since the earnings for the quarter ended December were announced on January 23. In the December quarter of the current fiscal, net profit of the Hyderabad-based generic injectable manufacturer declined 15% year-on-year to Rs 232 crore against Rs 269 crore consensus estimate made by analysts tracked by Bloomberg. Sequentially, the profit fell 4% from Rs 241.24 crore.
“Challenging business environment, ongoing supply chain disruptions leading to production delays continue to impact our performance,” said Srinivas Sadu, managing director and chief executive officer of Gland Pharma, in the exchange filing.
The company, he said, has received an Inspection Report from the USFDA after the last audit at Dundigal facility. “Our continued focus on product quality and compliance differentiates us and provide confidence to our partners for long term association.”
Abhijeet from Tips2trade said, “Gland Pharma is overbought on the daily charts with next resistance at Rs 1357. Investors should book profits at current levels or sell if close below support of Rs 1295.”
After the earnings were announced, Motilal Oswal gave a buy call on the stock with an upside of 23% for a target of Rs 1,700. That time, the market price was Rs 1,377.
“Gland Pharma’s Q3 performance was below our expectation, affected by lower sales across key markets due to inventory rationalization by customers and prolonged supply chain issues. Considering near-term business headwinds, we expect a 22% earnings decline YoY in FY23. However, with the resolution of issues, a better business outlook for biologics/China and the addition of Cenexi’s business, we expect a 17% earnings CAGR over FY23-25. The 58% fall in the stock price in the past one year already factors in the deterioration in the business outlook. Maintain Buy,” said Motilal Oswal.
YES Securities too looked bullish on the Gland Pharma stock signaling an upside of 24.7% with a target of Rs 1720. That time, the market price stood at Rs 1,378.
“Gland Pharma reported a weak topline with revenues down 10% QoQ and 12% YoY vs expectation of 2% YoY growth. US sales fell 14% QoQ and 13% YoY due to price erosion and supply chain issues leading to production delays. ROW sales were surprisingly 13% lower QoQ while India continued to rebound QoQ at Rs 814 mn against Rs 726 mn in Q2. Despite a weak revenue quarter, gross margin improved to 54.5% and margin improved to 31% though there were 150bps one-off in Q2, which still leads to 100bps margin gain QoQ,” said the brokerage.
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