HSBC has reiterated its buy rating on Glenmark Pharmaceuticals with a target price of ₹2,380 per share, pointing to progress at its innovation arm, steady deleveraging and key regulatory catalysts as drivers of future performance. The stock is currently trading at ₹1,919.40.
The brokerage said Glenmark Innovation (IGI), the company’s innovation-focused subsidiary, is set to evolve into a self-funding unit. This, it noted, would allow Glenmark Pharma to pursue research and development without overburdening the parent company’s balance sheet.
HSBC added that steady debt reduction will be crucial to demonstrate improved management execution, reinforcing investor confidence in the business.
On near-term catalysts, the brokerage highlighted the US FDA’s clearance of Glenmark’s Monroe manufacturing plant and approval for its Flovent respiratory therapy as key positives. These developments are expected to support earnings visibility and growth momentum in the coming quarters.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerage and do not represent investment advice.
