ICICI Securities has maintained its 'Reduce' recommendation for Glenmark Pharmaceuticals, while increasing the target price for the company's stock to Rs 1,300 from a previous target of Rs 1,265. This adjustment comes despite the current market price of Glenmark standing at Rs 1383.9. The brokerage projects a compound annual growth rate (CAGR) for Glenmark's revenue, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and PAT (Profit After Tax) at 10.3%, 15.0%, and 20.8%, respectively, for the period between fiscal years FY25 and FY27 (FY25-27E). However, expectations of slower growth within the Indian market have led ICICI Securities to slightly decrease its revenue and EBITDA forecasts for Glenmark for FY26 and FY27.

Glenmark Pharmaceuticals, established in 1977, is classified as a Mid Cap company and currently holds a market capitalization of Rs 39083.06 crore. The company's primary revenue streams are derived from pharmaceuticals, other operating revenue, and service sales, as reported for the fiscal year ending March 31, 2023.

In terms of recent financial performance, for the quarter ending March 31, 2025, Glenmark reported a Consolidated Total Income of Rs 3267.89 crore. This figure represents a decrease of 4.41% compared to the preceding quarter's Total Income of Rs 3418.68 crore and a 14.81% decline from the Total Income of Rs 3836.12 crore recorded in the same quarter of the previous year. The company reported a net profit after tax of Rs 4.38 crore for this latest quarter. As of March 31, 2025, Glenmark Pharmaceuticals had a total of 28 crore shares outstanding.

The leadership team at Glenmark Pharmaceuticals includes Mr. Glenn Saldanha, Mrs. Cherylann Pinto, Mr. V S Mani, Mrs. B E Saldanha, Ms. Saira Ramasastry, Mrs. Vijayalakshmi Iyer, Mr. Rajesh V Desai, and Mr. Dipankar Bhattacharjee. The company's financial audits are conducted by Walker, Chandiok & Co. LLP.

The investment rationale provided by ICICI Securities highlights that Glenmark's stock is currently trading at valuations of 23.8 times its FY26 estimated earnings (FY26E) and 19.3 times its FY27 estimated earnings (FY27E). The Enterprise Value to EBITDA (EV/EBITDA) multiples are 14.5 times for FY26E and 11.9 times for FY27E. Due to the anticipated slower growth in India, ICICI Securities has reduced its revenue and EBITDA estimates for Glenmark by approximately 2% for both FY26 and FY27. The brokerage emphasizes that enhanced free cash generation and the maintenance of a prudent balance sheet will be critical aspects to monitor in the upcoming quarters. They anticipate an EBITDA margin of 19.4% by FY27. The 'REDUCE' call is maintained with the revised target price of Rs 1,300, which is based on 18 times FY27E EPS, a shift from the previous valuation based on 22 times FY26E EPS. Potential upside risks to this outlook include successful new product launches and a quicker-than-expected recovery in the U.S. market.

Regarding shareholding patterns, as of March 31, 2025, promoters held a 46.65% stake in Glenmark Pharmaceuticals. Foreign Institutional Investors (FIIs) owned 23.15% of the company, while Domestic Institutional Investors (DIIs) held 14.6%.