Gland Pharma (GLAND) is a comprehensively injectable-focused company, with a wide generics portfolio comprising of  a) own/contract development, b) technology transfer, c) an established manufacturing value chain across the range of delivery systems, and d) extensive regulatory capabilities.GLAND is progressing well on building a complex product pipeline, backward integration, and gaining market share in commercialized limited-competition products.

Commenting on the outlook, the brokerage firm Motilal Oswal Retail Research said, "Accordingly, we expect a 25% earnings CAGR over FY20-23. The potential upside in earnings owing to inorganic opportunities funded through cash available on balance sheet is not captured in our estimate.GLAND stands out in the pharma universe with solid track record of developing and commercializing complex products in the injectables space.

Given that injectables have stringent regulatory guidelines compared with other dosages, GLAND is clearly at an advantage on account of its successful compliance.Moreover, it has delivered superior profitability / return ratios with minimal financial leverage. Accordingly, we value GLAND at 29x 12M forward earnings to arrive at target price of Rs 2,700. Initiate with a Buy rating on the stock."

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