Glenmark rises 2.7% as Citi maintains buy post Q3 earnings

Glenmark Pharma jumped as much as 2.7 percent in early trade on Thursday as the research firm Citi maintained a buy rating on the stock with a target price of Rs 660.

"Consistent delivery on earnings, along with a much improved balance sheet will likely drive a re-rating and narrow its valuation gap with sector leaders," Citi explained reason its report.

Healthcare firm reported stronger-than-expected numbers on all parameters, with the consolidated net profit growing 4.6 times year-on-year to Rs 213 crore in the third quarter of financial year 2012-13.

Consolidated total income grew by 34 percent to Rs 1,381 crore from Rs 1,031 crore during the same period, including out-licensing income of Rs 49.3 crore from Forest Labs. Out-licensing income stood at Rs 23.83 crore in the third quarter of previous financial year 2011-12.

Analysts on an average were expecting net profit at Rs 181 crore on total income of Rs 1,258 crore for the quarter.

At 10:29 hours IST, shares moved up 1.85 percent to Rs 504.50 on Bombay Stock Exchange.

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