1. At a Glance
Glenmark is a 22-year-old global pharma player with operations in over 80 countries. It just struck a $1.9 billion licensing deal with AbbVie for its cancer drug candidate—but still can’t decide if it’s a research innovator or a generic factory.
2. Introduction with Hook
Imagine a pharma company with billion-dollar molecules and billion-rupee confusion. Glenmark’s story is like watching House MD—but half the time you’re wondering if the patient is Glenmark itself.
- Market Cap: ₹62,849 Cr
- Stock P/E: 47.7x (yes, pharma bubble incoming)
- Recent FDA slap: Indore plant under Official Action Indicated (OAI)
3. Business Model (WTF Do They Even Do?)
Glenmark operates in three main verticals:
- Generics: US, India, Europe, and Emerging Markets
- Specialty/Branded Generics: Derma, Respiratory, Oncology
- R&D: Biologics and novel molecules (through Ichnos Sciences and Glenmark Life Sciences)
Revenue Mix (FY25 est.):
- India: ~30%
- North America: ~35%
- Europe + EMs: ~35%
They want to be Pfizer with Indian margins. It’s complicated.
4. Financials Overview
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 12,305 | 11,583 | 11,813 | 13,322 |
| Net Profit (₹ Cr) | 994 | 377 | -1,434 | 1,047 |
| OPM % | 19% | 14% | 10% | 18% |
| ROE % | 16% | 10% | -53% | 15.8% |
- FY24 was a dumpster fire (loss of ₹1,434 Cr). FY25 comeback powered by the AbbVie licensing deal and normalization of US generics pricing.
5. Valuation
Current Price: ₹2,226
EPS FY25: ₹37.1
Book Value: ₹314
P/E Valuation:
- 30x to 40x → FV Range = ₹1,113 – ₹1,484
P/BV Method:
- 4x to 6x → FV Range = ₹1,256 – ₹1,884
🎯 EduInvesting FV Range: ₹1,200 – ₹1,800
At ₹2,226, you’re paying for future molecules that haven’t left the lab yet.
6. What’s Cooking – News, Triggers, Drama
- Big Pharma Moment: $1.9B deal with AbbVie for ISB 2001
- FDA Trouble: Indore facility received a warning letter—fix in progress
- New Launches: Brukinsa, Tevimbra, generic Adderall, Olopatadine, Empagliflozin
- R&D Hype: ISB 2001 and Ichnos spin-off brewing
- Management Churn: New CFO, President in 2025
7. Balance Sheet
| Year | Equity Cap | Reserves | Debt | Total Assets |
|---|---|---|---|---|
| FY22 | ₹28 Cr | ₹9,058 Cr | ₹3,962 Cr | ₹17,052 Cr |
| FY25 | ₹28 Cr | ₹8,821 Cr | ₹2,473 Cr | ₹16,050 Cr |
- Reduced debt = good
- Reserves dipped due to FY24 loss
- Asset base stable, R&D still capital-heavy
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹625 Cr | ₹-515 Cr | ₹-77 Cr | ₹32 Cr |
| FY25 | ₹-828 Cr | ₹2 Cr | ₹787 Cr | ₹-38 Cr |
- Negative CFO in FY25 = R&D + working capital stress
- Free cash flow not free, it’s bleeding
- Financing activity saved the cash day
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 10% | 12% | 19.4% |
| ROE % | 10.5% | -53% | 15.8% |
| OPM % | 14% | 10% | 18% |
| Debtor Days | 115 | 57 | 92 |
- FY25 ROCE back in shape
- ROE recovered from grave
- Margins improving but still shy of leaders like Sun Pharma
10. P&L Breakdown – Show Me the Money
| FY25 (₹ Cr) | Amount |
|---|---|
| Revenue | 13,322 |
| Operating Profit | 2,351 |
| Net Profit | 1,047 |
| EPS | ₹37.1 |
| OPM % | 18% |
- Comeback season post FY24 chaos
- ISB 2001 licensing = one-time boost
11. Peer Comparison
| Company | CMP | P/E | ROE % | OPM % | FY25 PAT (₹ Cr) |
|---|---|---|---|---|---|
| Sun Pharma | ₹1,728 | 36.2 | 16.9 | 28.7 | 11,453 |
| Cipla | ₹1,491 | 23.4 | 17.8 | 25.9 | 5,142 |
| Glenmark | ₹2,226 | 47.7 | 15.8 | 18.0 | 1,047 |
- Glenmark has the highest P/E, lowest earnings
- Priced for R&D miracles, not balance sheet reality
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters | 46.65% |
| FIIs | 23.15% |
| DIIs | 14.6% |
| Public | 15.56% |
- Promoters steady
- FII+DII confidence returned post AbbVie deal
- Public bag-holding at P/E 47
13. EduInvesting Verdict™
Glenmark is a pharma paradox—big in research, but with patchy execution. The ISB 2001 deal with AbbVie is a gamechanger, but also a one-time revenue steroid. FDA issues and weak cash flows raise eyebrows. Still, the R&D pipeline is glowing, and if even one drug hits, Glenmark’s story changes forever.
A rollercoaster for investors who like their risk with a shot of biotech adrenaline.
Metadata
– Written by EduInvesting Analyst | 15 July 2025
– Tags: Glenmark, ISB 2001, AbbVie, FDA Warning, R&D Pharma, FY25 Results, Biotech Stocks, EduInvesting Analysis
