Gland Pharma Shares Decline As Phixen Acquisition Is Margin Dilutive, Say Analysts


Shares of Gland Pharma Ltd. declined the most since Nov. 10 after analysts see the acquisition of Phixen SAS as margin dilutive.

The company’s Singapore unit is set to buy Phixen SAS, a French group operating under the name of Cenexi, on a slump sale basis. 

“Consolidation of Cenexi may dent Gland Pharma’s FY24 margin to 30% from its 32% standalone margin for FY23E,” said Abdulkader Puranwala analyst with Elara Capital.

While Alankar Garude of Kotak Institutional Equities expects the acquisition to be difficult for Gland Pharma as it “will have to look at margin-dilutive international acquisition opportunities.” 

Shares of Gland Pharma closed 5.43% higher at Rs 1,776 apiece, while the benchmark Nifty 50 ended with 0.87% gains on Wednesday. The stock saw a spurt in volume and was trading at 2.7 times the 30-day average. 

Of the 20 analysts tracking the company, 13 maintain a “buy”, three suggest a “hold” and four recommend a “sell’, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 30.8%.


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