India's Glenmark Life Sciences posts lower Q4 profit as Red Sea crisis hurts API business

Alivus Life Sciences

25/04/2024 10:55

BENGALURU, April 25 (Reuters) - Indian drugmaker Glenmark Life Sciences  GLEM.NS  posted its first drop in
profit for six quarters on Thursday as its mainstay active pharmaceutical ingredients (API) business was hurt by
the Red Sea crisis.
    The Mumbai-based company, which is in process of being taken over by detergent maker Nirma, said its profit
fell 33% to 979.4 million rupees (nearly $12 million) in the January-March quarter, from 1.46 billion rupees a year
earlier.
    Revenue from its API business, its biggest, fell 8.6% in the fourth quarter, leading to a nearly 14% fall in
its total revenue.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3GY18P
    
    KEY CONTEXT
    Glenmark Life, like other Indian API makers, has been benefitting from increasing demand from Europe and the
United States, their biggest markets. They are also expected to benefit 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    
                                 Valuation (next    Estimates (next 12          Analysts' sentiment        
                                   12 months)            months)                                           
                      RIC        PE     EV/EBITD  Revenue     Profit      Mean     # of     Stock to       Div
                                        A         growth (%)  growth (%)  rating   analyst  price target   yield
                                                                          *        s        **             (%)
 Glenmark Life         GLEM.NS   17.09     11.45    13.13       15.49     Buy            3      0.91           3.99
 Sciences                                                                                                  
 Laurus Labs           LAUL.NS   54.96     21.44    15.32       102.30    Hold          11      1.21           0.37
 Granules India        GRAN.NS   16.66      9.91    12.98       40.91     Strong         4      0.93           0.36
                                                                          Buy                              
 Sun Pharmaceutical    SUN.NS    32.08     22.79    10.92       17.46     Buy           31      0.99           0.84
 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
    
    JANUARY-MARCH STOCK PERFORMANCE   

    -- All data from LSEG
    -- $1 = XX Indian rupees
 
 ($1 = 83.3456 Indian rupees)

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JANUARY TO MARCH STOCK PERFORMANCE    https://tmsnrt.rs/44kUkGM
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 (Reporting by Kashish Tandon in Bengaluru ; Editing by Savio D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))