Nomura has maintained its neutral stance on Gland Pharma with a target price of ₹1,570, reflecting a modest upside of 4% from the current market price of ₹1,503.90. The cautious view follows a mixed Q4 performance and ongoing revenue pressures in key markets.
The company’s Q4FY25 sales were in line, but EBITDA and PAT missed estimates by 2.4% and 15%, respectively, due to higher-than-expected employee costs.
While Cenexi revenues came in 7% above expectations, the base business (excluding Cenexi) saw a 12% YoY decline, primarily due to a high base in US realizations during Q4FY24 and tender losses in Rest of World (RoW) markets, where revenues missed estimates by 22%.
Despite the Q4 weakness, management has issued a more optimistic revenue outlook for FY26, expecting mid-teen growth, compared to Nomura’s current estimate of 9.5% YoY growth.
Current market price (CMP): ₹1,503.90
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