Religare's research report on GlenmarkGNP’s Q3 earnings missed estimates by 11% led by a revenue miss across key geographies and higher taxes. While EM currency issues may persist near term, we expect US business – with approvals of Ortho-tricylen Lo, Nitroglycerin and later the Zetia launch – to drive performance in the medium term. We pare FY17/FY18 earnings estimates by 18%/13% to reflect the weak quarter, higher tax rate and gradual debt reduction, but retain BUY on favourable valuations with a new Mar’17 TP of Rs 1,040 (from Rs 1,370).GNP is at attractive valuations of 17.5x/14.7x FY17E/18E P/E (ex-Zetia); we value it at 20x FY18E EPS (vs. 22x earlier) and add Rs 15/sh for Zetia to get our TP of Rs 1,040.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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