Shares of Glenmark Life Sciences Ltd. rose 3 percent in intraday trade on Thursday after brokerage house Kotak Institutional Equities gave a ‘Buy’ call on the stock with a price target of Rs 500 per share.
The price target of Rs 500 per share was 23 percent higher than Wednesday's closing price of Rs 405.15 on the BSE.
The brokerage house said that Glenmark Life lies at the cross-section of API companies such as Divi's Laboratories, which has absolute dominance in its key products, and firms like IOL Chemicals and Solara, which have a largely commoditised portfolio, with a selective edge.
It further said that Glenmark Life's business has been relatively resilient over the past two years, while it has been tough for the entire Indian active pharmaceutical ingredient (API) industry.
Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals, is a manufacturer of APIs in several areas. These APIs are high-value and non-commoditised in chronic therapeutic areas.
The company manufactures and sells APIs for gastrointestinal disorders, anti-infectives, and other therapeutic areas. Meanwhile, there are media reports suggesting that Glenmark Pharmaceuticals is considering selling a major chunk of its stake in Glenmark Life Sciences in order to pare debts.
Shares of Glenmark Life Sciences are trading 1.74 percent higher at Rs 411.90.
