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Stock to Buy: Shares of Gland Pharma Ltd extended their decline on Tuesday, falling nearly 3.4 per cent to Rs 1,905 on the NSE, as investors reacted to mixed brokerage reports following the company’s September-quarter results.

The Hyderabad-based injectable drug maker posted steady revenue and margins for the quarter, but analysts remained split on how soon its growth engine could pick up again.

Global brokerage Goldman Sachs kept its ‘Sell’ call intact, trimming the target price to Rs 1,700 from Rs 1,725 earlier. The firm said Gland faces headwinds from rising competition in the US market and pricing pressure across key product categories.

Goldman’s note also mentioned that while the company’s fundamentals are stable, “valuation looks stretched when compared with expected earnings growth.” It expects operating leverage to stay subdued in the near term.

Jefferies, on the other hand, maintained a ‘Hold’ rating but raised its target price to Rs 2,050, up from Rs 1,970. The brokerage believes the upcoming launch of complex injectable products and a gradual pick-up in regulatory approvals could offer some support to earnings.

It added that Gland’s cost structure remains under watch, especially as raw material and compliance expenses have inched up in recent quarters.

Meanwhile, Nomura reiterated its ‘Neutral’ view, revising the target price to Rs 2,000 from Rs 2,010. The brokerage said Gland’s recovery will be gradual, with single-digit revenue growth expected over the next few quarters.

Nomura pointed out that supply chain conditions have normalised but the pricing environment in export markets remains challenging.

Despite short-term volatility, most analysts agree that Gland Pharma’s manufacturing expertise, diversified portfolio, and regulatory track record position it well for long-term growth.

The company, founded in 1978, exports sterile injectable drugs to over 60 countries, including the US and Europe. Over the past year, its stock has gained roughly 35 per cent, reflecting improved investor sentiment toward the domestic pharmaceutical sector.

At around Rs 1,905, the stock trades near its one-month low, with the market likely waiting for a clearer signal on earnings momentum before taking a fresh view.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff