Shares of Gland Pharma surged about 4 percent after Goldman Sachs initiated ‘buy’ rating on shares of the pharmaceutical company with a target price of Rs 2,830. Following a slow FY23 due to raw material shortage, Goldman Sachs expects a rebound in FY24 after baking in 27 percent growth in topline.
The growth is expected to be driven by pick up in rest of the world and India sales as supply constraints ease off while demand remains robust. Double-digit growth on the back of new launches as well share gains in existing products will also aid growth, according to the brokerage firm.
At 11:41 am, shares of the company were trading 0.7 percent higher at Rs 2,386.3 on the BSE.
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The global brokerage firm sees the pharmaceutical company becoming a leading global generic injectable player with addressable generic market size of $138 billion by financial year 2027.
Increasing production capacities and utilisations at its key facilities is another growth driver, as per Goldman Sachs.
Last week, BofA Securities said it has maintained a ‘buy’ rating on Gland Pharma with a target price of Rs 3,200 per share.
