Today, we shift our focus to a company that has recently made headlines due to its ongoing stake-selling process—Glenmark Life Sciences. As this pharmaceutical giant explores strategic options involving its active pharmaceutical ingredients (APIs) division, the financial world eagerly awaits the outcome, with one question looming large: What does the future hold for Glenmark Life Sciences’ share price? Can the stock price reach the 1000 mark by 2030?
In this article, we will analyze key factors, market trends, and historical performance to provide you with valuable insights into predicting the future movement of Glenmark Life Sciences’ shares. By the end of this exploration, you will be better equipped to navigate the uncertainties and seize the opportunities that lie ahead in the world of Glenmark Life Sciences’ stock.
About Glenmark Pharmaceuticals
It’s a subsidiary of the well-known Glenmark Pharmaceuticals Ltd. They’re not just any pharmaceutical company; they’re all about developing and making some seriously high-value Active Pharmaceutical Ingredients (APIs).
But that’s not all they do. Glenmark Life Sciences is a dynamic player in the pharmaceutical world, and they’ve got two main things going on: API Business and Contract Development and Manufacturing Operations (CDMO). They’re like a double threat in the pharma game.
First up, their API Business is pretty impressive. They’re big shots when it comes to making specialized APIs for chronic therapeutic areas. Think Cardiovascular disease, diabetes, and pain management – they’ve got that covered. And they don’t stop there; they’re leaders in some high-value non-commercialized APIs in those chronic therapeutic areas.
Their product portfolio is pretty diverse, with a whopping 120 different molecules. The top 10 in that list bring in a significant chunk of their revenue, about 66.36% to be precise. But here’s the cool part – they’re always cooking up something new, aiming to launch 8 to 10 fresh molecules every year. Oh, and as of March FY21, they’ve filed a staggering 399 Drug Master Files (DMFs).
Now, let’s talk about how far their reach goes. Sure, they’re big in their home turf, but they’re also exporting their goods to Europe, North America, Latin America, and a bunch of other Asian countries. International exports are a big deal for them, making up 43% of their revenue.
Glenmark Pharmaceuticals Q1 Fy2024 Key Points And Summary:
- Glenmark Life Sciences achieved a total revenue of ₹5,785 million, marking an 18.1% YoY increase but a 6.9% QoQ decrease.
- The company’s EBITDA reached ₹1,950 million, reflecting a robust 24.8% YoY growth, while experiencing a slight 6.8% QoQ decline.
- Glenmark Life Sciences reported a PAT of ₹1,355 million, showcasing a strong 24.6% YoY growth, albeit with a 7.5% QoQ decrease in profit.
- Both the external business and GPL business maintain robust growth momentum, with growth rates of approximately 17.8% YoY and 18.6% YoY, respectively.
- The CDMO business has exhibited remarkable growth, surging by an impressive 91% on a year-over-year basis.
- Gross margins have shown substantial improvement in Q1 FY24, standing at 57.1%, which represents a notable increase of 220 basis points compared to the previous quarter and 380 basis points compared to the previous year. This improvement can be attributed to reduced input costs and a more favorable product mix.
Glenmark Pharmaceuticals Shareholding Patterns:
| Mar 2022 | Mar 2023 | Jun 2023 | |
| Promoters + | 82.85 | 82.85 | 82.85 |
| FIIs + | 8 | 3 | 3 |
| DIIs + | 0.56 | 0 | 0.58 |
| Public + | 8.47 | 13.86 | 13.3 |
- The promoters’ shareholding has remained consistent at 82.85% both quarterly and yearly from March 2022 to June 2023.
- Foreign Institutional Investors (FIIs) initially held 8.12% in March 2022 but reduced their stake to 3.28% by March 2023 and maintained it at 3.27% in June 2023.
- Domestic Institutional Investors (DIIs) held a marginal 0.56% stake in March 2022, which decreased to 0.00% by March 2023 but slightly rebounded to 0.58% in June 2023.
- The public’s shareholding increased from 8.47% in March 2022 to 13.86% in March 2023 and then slightly decreased to 13.30% in June 2023.
Additionally, it’s noteworthy that Glenmark Pharmaceuticals’ management is considering divesting an 8% stake in Glenmark Life Sciences to comply with regulatory requirements concerning public shareholding. This strategic move reflects the company’s commitment to regulatory compliance and adherence to market dynamics.
Glenmark Pharmaceuticals Share Price Target 2023 To 2030
Glenmark Pharmaceuticals Share Price Target 2023
| When | Maximum Price | Minimum Price |
| November 2023 | ₹793.98 | ₹594.53 |
| December 2023 | ₹775.56 | ₹614.15 |
As per our analysis for the year 2023, we can identify the following price trends across four different months.
- Glenmark Pharmaceuticals” overall maximum price is expected to occur in September 2023 at ₹880.
- The overall minimum price is expected to occur in January 2023 at ₹369.
Glenmark Pharmaceuticals Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹689.35 | ₹599.43 |
| February 2024 | ₹703.42 | ₹611.67 |
| March 2024 | ₹717.77 | ₹624.15 |
| April 2024 | ₹696.87 | ₹605.97 |
| May 2024 | ₹686.57 | ₹597.01 |
| June 2024 | ₹711.28 | ₹618.51 |
| July 2024 | ₹704.17 | ₹612.32 |
| August 2024 | ₹732.34 | ₹636.81 |
| September 2024 | ₹761.63 | ₹662.29 |
| October 2024 | ₹746.70 | ₹649.30 |
| November 2024 | ₹769.10 | ₹668.78 |
| December 2024 | ₹788.33 | ₹685.50 |
Reviewing the anticipated stock prices for the entire expected year of 2024, we can anticipate observing the highest and lowest prices for each of the twelve months:
- Glenmark Pharmaceuticals’ peak price for the expected year is expected to be recorded in December 2024, reaching ₹788.33.
- Conversely, the lowest price point is expected to be noted in February 2024, at ₹599.43.
Our analysis of stock prices for the year 2024 is expected to demonstrate notable fluctuations in prices across the months.
These fluctuations are expected to reflect the dynamic nature of the market and underline the importance of careful timing and strategy in investment decisions over the course of the expected year.
Glenmark Pharmaceuticals Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹804.09 | ₹618.53 |
| February 2025 | ₹824.71 | ₹634.39 |
| March 2025 | ₹856.87 | ₹659.13 |
| April 2025 | ₹840.07 | ₹646.21 |
| May 2025 | ₹815.60 | ₹627.39 |
| June 2025 | ₹852.31 | ₹655.62 |
| July 2025 | ₹835.59 | ₹642.76 |
| August 2025 | ₹861.44 | ₹662.64 |
| September 2025 | ₹891.59 | ₹685.84 |
| October 2025 | ₹914.77 | ₹703.67 |
| November 2025 | ₹937.64 | ₹721.26 |
| December 2025 | ₹961.08 | ₹739.29 |
- Glenmark Pharmaceuticals’ highest price for the year is expected to be recorded in December 2025, reaching ₹961.08.
- The lowest price point is expected to be observed in January 2025, at ₹618.53.
This analysis is expected to highlight the substantial price fluctuations that will characterize the year, emphasizing the need for investors to monitor market trends and adopt informed investment strategies.
Glenmark Pharmaceuticals Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹1,009.13 | ₹706.39 |
| 2027 | ₹1,110.05 | ₹777.03 |
| 2028 | ₹1,554.06 | ₹777.03 |
| 2029 | ₹1,345.51 | ₹672.75 |
| 2030 | ₹1,749.16 | ₹1,224.41 |
As per our analysis for the years 2026 to 2030, we are expected to observe the maximum and minimum prices for each year:
- In 2026, we are expected to see the highest price reach ₹1,009.13, with the lowest expected at ₹706.39.
- Moving to 2027, the maximum price is expected to rise to ₹1,110.05, while the minimum is expected to stand at ₹777.03.
- 2028 is expected to see a substantial increase in the maximum price, reaching ₹1,554.06, while the minimum is expected to remain at ₹777.03.
- In 2029, we can expect the maximum price to be ₹1,345.51, with the minimum expected at ₹672.75.
- 2030 is expected to mark a significant price range with the maximum at ₹1,749.16 and the minimum at ₹1,224.41.
When we review the historical stock price data from 2026 to 2030, we can expect to observe a promising trend. The maximum prices have consistently increased over these years, indicating a positive trajectory. Although past performance cannot guarantee future results, this upward movement suggests that the stock may indeed have the potential to surpass the 1000 mark by 2030.
Glenmark Pharmaceuticals Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + | 886 | 1,537 | 1,885 | 2,123 | 2,161 |
| Expenses + | 638 | 1,064 | 1,294 | 1,506 | 1,518 |
| Operating Profit | 248 | 473 | 592 | 617 | 643 |
| OPM % | 28% | 31% | 31% | 29% | 30% |
| Other Income + | 0 | 11 | 0 | 14 | 28 |
| Interest | 1 | 34 | 88 | 28 | 1 |
| Depreciation | 19 | 29 | 33 | 38 | 42 |
| Profit before tax | 228 | 421 | 471 | 565 | 629 |
| Tax % | 14% | 26% | 25% | 26% | 26% |
| Net Profit + | 196 | 313 | 352 | 419 | 467 |
| EPS in Rs | 997.86 | 1,597.37 | 358.74 | 34.17 | 38.11 |
| Dividend Payout % | 0% | 0% | 0% | 61% | 110% |
Taking a closer look at the financial data spanning from March 2019 to March 2023, we find several positive indicators that highlight the company’s growth and financial stability.
- Glenmark Pharmaceuticals Sales Growth: Over the five-year period from March 2019 to March 2023, the company’s sales have steadily increased from ₹886 million to ₹2,161 million. This reflects consistent revenue growth.
- Operating Profit: The operating profit has also shown a positive trend, rising from ₹248 million in March 2019 to ₹643 million in March 2023, indicating effective cost management and operational efficiency.
- Other Income: Other income, though negligible in the early years, saw a significant increase over time, reaching ₹28 million in March 2023. This could indicate diversification or investment income.
- Net Profit: The net profit has shown consistent growth, increasing from ₹196 million in March 2019 to ₹467 million in March 2023, signifying the company’s ability to generate sustainable profits.
- Earnings Per Share (EPS): The EPS experienced substantial fluctuations, with a peak of ₹1,597.37 in March 2020 due to a lower number of outstanding shares. However, it dropped significantly in subsequent years, indicating a potential dilution of shares.
- Dividend Payout: The dividend payout percentage increased significantly from 0% to 110% between March 2019 and March 2023, indicating a shift in the company’s dividend distribution policy to return more profits to shareholders.
In a positive light, the company showcased steady sales growth, improved operating profits, and a consistent tax management strategy over the five-year period from March 2019 to March 2023. This reflects a promising trajectory of financial stability and operational efficiency.
FAQs
What Is the Current Share Price of Glenmark Pharmaceuticals?
As of the most recent data available, Glenmark Pharmaceuticals’ current share price stands at ₹730, reflecting the valuation of its shares in the current market conditions.
What Is the Target Share Price of Glenmark Pharmaceuticals for 2025?
Glenmark Pharmaceuticals’ share price targets for the year 2025 range from a minimum of ₹618.53 to a maximum of ₹961.08.
What Is the Target Share Price of Glenmark Pharmaceuticals for 2030?
Glenmark Pharmaceuticals’ share price target for the year 2030 is expected to range between ₹1,224.41 (the minimum observed in 2030) and ₹1,749.16 (the maximum observed in 2030).
Also read:
Should One Invest In Glenmark Pharmaceuticals?
When considering an investment in Glenmark Life Sciences, focus on some crucial factors. On the positive side, the company maintains a solid financial foundation with minimal debt, ensuring financial stability. Additionally, investing in their stock can yield a decent 3.33% dividend, providing a bonus on your investment. The company consistently generates profits, boasting an impressive Return on Equity (ROE) of around 30.4% over the past three years, making shareholders happy. Furthermore, they regularly distribute profits to shareholders through dividends, with a 57.2% payout ratio.
However, some aspects warrant attention. The company’s working capital days have increased from 112 to 175, indicating potential short-term financial challenges. Additionally, consider an important development in the pharmaceutical industry: Glenmark Pharmaceuticals is considering selling Glenmark Life Sciences (GLS), specializing in active pharmaceutical ingredients (APIs). Potential buyers like Sekhmet Pharmaventures and the Nirma group are in the picture. If this sale goes through, it could significantly impact the company’s operations and profitability. In the last fiscal year, GLS generated substantial revenue of approximately Rs 2,161 crore, underscoring its critical role within the company.
In conclusion, while investing in Glenmark Life Sciences has advantages, such as strong financials and dividends, it’s crucial to consider drawbacks, including increased working capital days and the potential sale of part of the company. If you’re contemplating an investment, thorough research and staying informed about pharmaceutical industry developments are highly recommended.
