Jefferies has downgraded its target price for Gland Pharma to Rs 1350 while maintaining an ‘Underperform’ rating, following another disappointing quarter. The company reported weak revenue growth in its base business, compounded by ongoing challenges from the recently acquired Cenexi business. Management now expects the base business to recover in Q4, but Cenexi’s breakeven timeline has been pushed out by another year.
Jefferies expressed concerns about execution weaknesses and noted that the stock currently lacks near-term catalysts to drive growth. As a result, the brokerage has lowered its FY25-27 EPS estimates by 1-4%, reflecting a slower recovery in the Cenexi acquisition. The firm emphasizes that unless Gland Pharma demonstrates a tangible improvement in operational execution, its stock is unlikely to see significant upside.
