Buy Glenmark Pharma For Short Term: Nirmal Bang

Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Glenmark Pharmaceutical Ltd with a target of Rs 275 in the short term.

According to Nirmal Bang, “Buy and hold with a long time horizon, stock has consolidated for quite some time in the region of 206-228 and today with huge volumes has shown strong sign of breaking this trading band, support exits at 214 which is 200-day moving average, unless the counter breaks below this point there is no sign of weakness and if trades above 240 then look for 275.”

Today (Sep 29), the shares of the company opened at Rs 229 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 6.64 & 35.24 respectively. The share price has seen a 52-week high of Rs 604.40 and a low of Rs 119.15 on BSE.

Glenmark Pharma, on Sep 25, has lifted up Rs 413 crore via its recently concluded qualified institutional placement (QIP) that will be utilized in the direction of its debt lessening plan.

In the existing fiscal, Glenmark has decided to invest significantly in R&D out of its own accruals, whereas keeping up a well-situated profit margin on the base business.

On Sep 19, Glenmark Generics, a group company of Glenmark Pharma, declared that it has received ANDA approval from USFDA for Verapamil Extended Release tabs, which will be available in the strength of 240 milligram.

Glenmark Pharma, on Sep 18, announced that it will lift up $250 million from abroad markets or by private placement of shares.

The company’s stockholders have given their sanction to lift up $250 million with an option to raise extra funds if the issue gets oversubscribed.

The company said that it will lift the said amount through GDRs, ADRs and FCCBs or through private placement of shares or by QIIs.

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