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    Glenmark Pharma shares hit 52-week low as global brokerages cut target after weak Q1

    Glenmark Pharma shares hit 52-week low as global brokerages cut target after weak Q1

    Glenmark Pharma shares hit 52-week low as global brokerages cut target after weak Q1
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    By CNBC-TV18  IST (Published)

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    Shares of Glenmark Pharma fell as much as 6 percent to a 52-week low of Rs 360.35 on Friday, as global brokerages slashed price target on the stock after weak June-quarter earnings.

    Shares of Glenmark Pharma fell as much as 6 percent to a 52-week low of Rs 360.35 on Friday, as global brokerages slashed price target on the stock after weak June-quarter earnings.
    At 12:23 PM, the stock was trading 5 percent lower at Rs 364 per share on the BSE as compared to a 0.12 percent (46 points) gain in Sensex.
    Glenmark Pharma reported a 53 percent year-on-year (YoY) fall in its consolidated net profit at Rs 109.28 crore despite a one-time forex gain of Rs 138.21 crore. Meanwhile, consolidated revenue grew 7.3 percent YoY to Rs 2,322.87 crore in Q1.
    “Our first-quarter performance in key markets like India and Europe was impressive on account of new product launch and partnership deals. However, the overall performance was impacted due to moderate performance in the US and subdued performance in Latin America,” Glenn Saldanha, Chairman and MD at Glenmark Pharmaceuticals, said in a statement.
    Global brokerages CLSA and Credit Suisse cut their price targets for the stock following Q1 earnings.
    CLSA maintained a 'sell' call on the stock but slashed target price to Rs 350 per share from Rs 500 earlier as it expects earnings growth to remain under pressure. The brokerage also cut its FY20-21 EPS estimates by 15-18 percent.
    Credit Suisse, however, retained its 'neutral' rating on the stock but reduced target price to Rs 415 per share from Rs 600 earlier. It also cut the stock's FY20/21 EPS estimates by 24/16 percent to factor in weak Q1.
    The US recovery will be driven by two new launches in Q2 and Novartis deal will help recovery in Brazil, as per Credit Suisse.
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