Glenmark:Margins expand - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Glenmark:Margins expand

Jun 11, 2002

Glenmark Pharmaceuticals Ltd, one of the leading pharma companies in dermatology segment (which deals with skin infections) has shown an impressive performance for the year ended March'02. While, sales have improved by 25%, operating margins have shown an improvement of more than 480 basis points, which is remarkable. However, higher interest and depreciation expenses diluted bottomline growth. The bottomline growth was still impressive at 34%.

(Rs m)FY01FY02% Change
Sales 1,923 2,402 24.9%
Other Income 21 16 -26.0%
Expenditure 1,624 1,915 17.9%
Operating Profit (EBDIT) 299 486 62.7%
Operating Profit Margin (%)15.5%20.3%
Interest 83 129 55.1%
Depreciation 51 88 73.0%
Profit before Tax 186 285 53.1%
Extraordinary Income - -
Tax 15 57 272.5%
Profit after Tax/(Loss) 171 228 33.5%
Net profit margin (%)8.9%9.5% 
No. of Shares (eoy) (m)10.110.1 
Diluted Earnings per share*16.922.6 
P/E (at current price)7.212.0 
(*- annualised)   

Glenmark is a leader in the dermatology segment which contributed around 35% to its turnover. After the acquisition of Flucort (Lyka brand) the company also has considerable presence in the steroid segment of the dermatology market. The company has also identified the anti-diabetes market as a key growth area in future. A separate marketing force catering specifically to this market has also been set up, comprising an all-India sales force of 130 medical representatives.

The company's newly introduced division ‘Healtheon’ in the fast growing anti-diabetes market recorded impressive performance during the year. It may be recalled that the company has a tripartite agreement with Biobrass (the world’s third largest manufacturer of human and porcine insulin) and Ambalal Sarabhai to market insulin’s in the domestic market. Under the agreement Ambalal Sarabhai is importing insulin crystals from Biobrass to manufacture finished dosages and Glenmark is marketing the products.

Glenmark is striving to take a lead in research activities. In a significant development, the company has recently filed patent for a new anti-asthma drug, that is currently completing pre-clinical trials. The company has also initiated dialogues with various MNCs for collaborative research projects.

At the current market price of Rs 270, the stock is quoting at 12x its FY02 earnings. Given the initiatives taken by the company and focus on niche therapeutic segments one can expect the pace of growth to continue in future.

Equitymaster requests your view! Post a comment on "Glenmark:Margins expand". Click here!


More Views on News

GLENMARK PHARMA 2020-21 Annual Report Analysis (Annual Result Update)

Sep 6, 2021 | Updated on Sep 6, 2021

Here's an analysis of the annual report of GLENMARK PHARMA for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of GLENMARK PHARMA. Also includes updates on the valuation of GLENMARK PHARMA.

GLENMARK PHARMA Announces Quarterly Results (1QFY22); Net Profit Up 20.7% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, GLENMARK PHARMA has posted a net profit of Rs 3 bn (up 20.7% YoY). Sales on the other hand came in at Rs 30 bn (up 26.4% YoY). Read on for a complete analysis of GLENMARK PHARMA's quarterly results.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 1, 2021 12:09 PM


  • Track your investment in GLENMARK PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks