Gland Pharma share: Jefferies upgrades to hold, Goldman Sachs maintains sell; divergent views on recovery and upside
Jefferies has upgraded its rating on Gland Pharma to Hold from its previous stance, with a revised target price of ₹1,970, citing operational recovery signs and a turnaround in its European subsidiary Cenexi. The brokerage noted that the Q1FY26 performance was in-line, supported by the launch of higher-value projects and improved capacity utilization at Cenexi. While the US segment witnessed a weak quarter, management remains optimistic about a stronger second half and has reiterated its mid-teens revenue growth guidance for FY26.
Jefferies believes that Gland Pharma's earnings have likely bottomed out but sees limited upside potential at current valuations, justifying its 'Hold' stance.
In contrast, Goldman Sachs has retained its Sell rating on the stock, with a target price of ₹1,675. The brokerage said Gland Pharma's Q1 sales and EBITDA grew 7% and 39% year-on-year, respectively—broadly in line with expectations. The outperformance in Cenexi was offset by continued weakness in the US business, which declined 5% YoY.
Goldman highlighted an improvement in gross margins, driven by a better product mix and lower raw material costs, which led to a 557 basis points expansion in EBITDA margin to 24.4%. However, it projects a flat FY25 and only a mid-teens growth trajectory in FY26, indicating muted near-term prospects.
Disclaimer: The views and investment recommendations expressed in this article are those of the brokerage firms quoted. These do not represent the views of Business Upturn. Investors are advised to consult certified financial advisers before making any investment decisions.
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Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at BusinessUpturn.com. You can write to her at [email protected]
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