India's Glenmark Life Sciences posts higher Q1 revenue on API boost

Alivus Life Sciences

25/07/2024 17:04

BENGALURU, July 25 (Reuters) - Indian drugmaker Glenmark Life Sciences  GLEM.NS  posted a higher
first-quarter revenue on Thursday, driven by strong demand in its mainstay active pharmaceuticals ingredients
business.
    The Mumbai-based company said revenue from operations rose 2% to 5.89 billion rupees ($70.3 million). Its
API business, which accounts for almost all of its revenue, climbed 6.2% from last year. 
    APIs are key biologically active elements in a drug and are responsible for producing desired health
effects.
    However, the company's profit fell 18% to 1.11 billion rupees, as it was impacted by inventory-related
expenses worth 414.3 million rupees.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JH1W7 
    
    KEY CONTEXT
    Glenmark Life, like other Indian API makers, has been benefiting from increasing demand in its key
European and U.S. markets and is expected to continue benefiting as global drugmakers seek to reduce their
reliance on China.
    Glenmark Life has over 130 APIs in its portfolio across key therapy areas such as cardiovascular, oncology
and anti-infectives.
    
    PEER COMPARISON    
                                              Estimates (next 12          Analysts' sentiment         
                                                   months)                                            
                  RIC         PE     EV/EBI  Revenue     Profit    Mean      # of      Stock to       Div
                                     TDA     growth (%)  growth    rating*   analysts  price          yield
                                                         (%)                           target**       (%)
 Glenmark Life     GLEM.NS    18.26   12.05    13.30      15.44    Buy              4      0.94           3.88
 Sciences                                                                                             
 Granules India    GRAN.NS    20.66   11.68    12.76      36.42    Strong           4      1.12           0.29
                                                                   Buy                                
 Laurus Labs       LAUL.NS    48.16   20.09    16.13      103.08   Hold            11      1.12           0.18
 Sun               SUN.NS     33.41   24.63    10.25      10.95    Buy             30      1.01           0.85
 Pharmaceutical                                                                                       
 Industries                                                                                           
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    APRIL TO JUNE STOCK PERFORMANCE
    -- All data from LSEG
    -- $1 = 83.7804 Indian rupees
    


($1 = 83.7580 Indian rupees)

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APRIL TO JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3zWRWe7
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza and Tasim Zahid)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))