The brokerage firm Motilal Oswal is optimistic about this pharma stock and expects it to deliver strong returns in the coming quarters. The brokerage has maintained a ‘Buy’ rating with a target price of Rs 2,310. This translates to an upside potential of nearly 17% from current market levels.
The stock in focus is Gland Pharma, which, according to the brokerage report, posted a mixed performance in the September quarter but continues to hold a strong product pipeline and upcoming capacity expansion.
Let’s take a look at the brokerage say on this stock –
Motilal Oswal on Gland Pharma: Margins dip, but outlook steady
According to the brokerage report, Gland Pharma’s revenue for the second quarter of FY26 was in line with estimates, but earnings before interest, tax, depreciation, and amortisation (EBITDA) and profit after tax (PAT) fell short by 9% and 11%, respectively.
Motilal Oswal said, “A lower-than-expected share of milestone income and lower tech transfer/CMO (contract manufacturing organisation) business in rest-of-world markets impacted performance.”
However, it expects growth to pick up in the coming quarters, backed by limited-competition products and a strong pipeline for FY26 and FY27.
Motilal Oswal on Gland Pharma: Expansion plans and future growth
The brokerage noted that upgrades at the Cenexi facility and the addition of new lyophiliser lines are progressing as planned. These are expected to boost production and revenue from the next quarter.
Gland Pharma is also strengthening its presence in the GLP-1 drug segment used for diabetes and obesity treatment.
“Gland is implementing a two-pronged strategy in GLP-1 opportunity. It is not only adding a customer base but also working on expanding the capacity to cater to future needs of peptide manufacturing,” the report noted.
Motilal Oswal on Gland Pharma: Growth forecast and valuation
Motilal Oswal expects the company to deliver a compound annual growth rate (CAGR) of 13% in sales, 18% in EBITDA, and 24% in profit during FY25–FY28.
The brokerage added, “We value Gland Pharma at 33x 12-month forward earnings to arrive at a target price of Rs 2,310, maintain Buy.”
