Shares of Gland Pharma are 80% lower than their all-time high: Buy on the downturn?

On Friday, Gland Pharma, a pharmaceutical company, had a market cap of 19,400.51 Cr. It is one of the biggest companies that makes generic injectables. It does business in more than 60 countries, including the United States, Europe, Canada, Australia, India, and other places. In the Gland Pharma IPO, 43,196,968 shares of stock with a face value of 1 each were sold. This brought in up to Rs. 6499 Cr. The price per share was between 1490 and 1500, and the initial public offering (IPO) happened between November 9 and November 11, 2020. The company’s stock was put on the exchanges on November 20, 2020.

History of the price of Gland Pharma shares

On Friday, Gland Pharma shares closed on the NSE at 1,189.80 each, which was 3.79 percent less than their previous close of 1,236.65. The average volume of the stock was 6,04,825 shares, while the average volume over the past 20 days was 19,590 shares. Since the IPO, the price of the shares has dropped by 34.61 percent, which is a record low.

In the past year, the shares have dropped by 64.27 percent, and so far in 2023, they are down by 24.50%. In the last six months, the stock has dropped 49.61%, and in the last month, it has dropped 12.84. 8.37% was the drop over the last five trading days. At the current market price, the stock is 79.83% below its all-time high. The stock’s all-time high was reached on October 18, 2021, when it hit 5900.00 per share, which was the highest price ever. On (21-Apr-2022), the stock hit a 52-week high of 3,559.40 and a 52-week low of 1,167.00. (06-Feb-2023).

Earnings at Gland Pharma

The company had a consolidated net income of 999.80 Cr in Q3FY23, which was 9.84% less than the 1,108.99 Cr it made in Q3FY22. During the quarter that ended in December 2022, the company had net expenses of 686.33 Cr, which was 7.5% less than the quarter that ended in December 2021, when they were 742.25 Cr.

Gland Pharma’s EBIT was 313.47 Cr in Q3FY23, compared to 366.75 Cr in the same quarter of FY22. The company said its net profit was 231.95 Cr in Q3FY23, which was 15% less than the 273.03 Cr it made in the same quarter of FY22. In Q3FY23, Gland Pharma’s EPS was 14.08, which was less than the EPS of 16.62 in Q3FY22.

Gland Pharma: Should you buy it?

Rahul Ghose, Founder and CEO of Hedged, an algorithm-powered advisory platform, said about the stock price outlook, “The gland pharma stock is currently near its all-time low and the previous support area around INR 1170 level, which is not a strong reason to start buying it.” Some of the main reasons why the stock has dropped more than 65% from its peak and will continue to do so are production delays in its main markets, big problems with its supply chain, and a worse-than-expected performance in its most recent Q3 quarter.”

“Technically, the stock is not yet a buy, and it won’t become a buy until it has two closings that are higher than INR 1280. We are also seeing a rise in the bollinger bands indicator to the upside. This may or may not happen, but it is one of the most important things to look out for if you want to buy the stock. The INR 1280 level is also the 20 day exponential moving average (EMA) for this stock. This is important because the stock has never closed above its 20 day EMA since January 2022 “Rahul Ghose said more.

Sayyam Agarwal, who is the Head of Academics for ANG (Aspire Now Global), said that Gland Pharma was founded in 1978 in Hyderabad, India. Over the years, it has grown from a small-volume contract manufacturer of liquid parenteral products to one of the largest and fastest-growing companies that focuses on injectables. It has a presence in more than 60 countries, including the US, Europe, Canada, Australia, India, and others.

Ajith Kumar

Ajith Kumar

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