Glenmark Pharma tastes bitter

Glenmark Pharma is the top loser on the BSE right since the morning. The stock opened breaching the lower circuit at Rs.813.95 and after that continued to only slide. Going down to Rs.760, falling down by a jaw dropping 16%, it has since then recovered and is now at Rs.782, down 13.5%.

This is an over reaction to the Q4FY17 numbers. The performance is not bad to evince this kind of fall but the market merely deiced to concentrate on the fact that it missed estimates by a huge margin and QoQ, the performance was very disappointing.

Its net profit for the quarter was up at Rs.184 crore as against estimates of Rs.580 crore. Revenue rose 6.5% (YoY) at Rs.2457 crore  v/s estimates of Rs.2713 crore. QoQ, the net profit was down 61% and topline fell 3% - this was more disturbing than missing the estimates.