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Glenmark Pharmaceuticals Limited (NSE:GLENMARK) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?

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Glenmark Pharmaceuticals’ (NSE:GLENMARK) stock is up by a considerable 36% over the past three months. However, we decided to pay attention to the company’s fundamentals which don’t appear to give a clear sign about the company’s financial health. In this article, we decided to focus on Glenmark Pharmaceuticals’ ROE.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company’s success at turning shareholder investments into profits.

See our latest analysis for Glenmark Pharmaceuticals

How Is ROE Calculated?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for Glenmark Pharmaceuticals is:

14% = ₹9.7b ÷ ₹71b (Based on the trailing twelve months to March 2021).

The ‘return’ is the amount earned after tax over the last twelve months. Another way to think of that is that for every ₹1 worth of equity, the company was able to earn ₹0.14 in profit.

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company’s future earnings. We now need to evaluate how much profit the company reinvests or “retains” for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don’t necessarily bear these characteristics.

Glenmark Pharmaceuticals’ Earnings Growth And 14% ROE

On the face of it, Glenmark Pharmaceuticals’ ROE is not much to talk about. However, given that the company’s ROE is similar to the average industry ROE of 15%, we may spare it some thought. However, Glenmark Pharmaceuticals has seen a flattish net income growth over the past five years, which is not saying much. Bear in mind, the company’s ROE is not very high. So that could also be one of the reasons behind the company’s flat growth in earnings.

As a next step, we compared Glenmark Pharmaceuticals’ net income growth with the industry and were disappointed to see that the company’s growth is lower than the industry average growth of 16% in the same period.

past-earnings-growth
NSEI:GLENMARK Past Earnings Growth June 13th 2021

Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company’s expected earnings growth (or decline). Doing so will help them establish if the stock’s future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Glenmark Pharmaceuticals is trading on a high P/E or a low P/E, relative to its industry.

Is Glenmark Pharmaceuticals Making Efficient Use Of Its Profits?

Glenmark Pharmaceuticals has a low three-year median payout ratio of 7.3% (or a retention ratio of 93%) but the negligible earnings growth number doesn’t reflect this as high growth usually follows high profit retention.

Additionally, Glenmark Pharmaceuticals has paid dividends over a period of at least ten years, which means that the company’s management is determined to pay dividends even if it means little to no earnings growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 6.3%. Therefore, the company’s future ROE is also not expected to change by much with analysts predicting an ROE of 14%.

Conclusion

On the whole, we feel that the performance shown by Glenmark Pharmaceuticals can be open to many interpretations. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Pharmaceuticals

Authorities Raid Pharmaceuticals In Bolangir 

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With vulnerability of people at an all time high amid the second wave of the Covid pandemic crisis, the wrong doers have found perfect opportunities to make profits especially in health sector which is evident from the back to back incidents of seizure of spurious pharma drugs from several parts of the State. 

After Cuttack and Rourkela, the Drugs Inspector of Bolangir on Sunday raided some pharma outlets in the city on the basis of orders from the Drugs Controller.

With vulnerability of people at an all time high amid the second wave of the Covid pandemic crisis, the wrong doers have found perfect opportunities to make profits especially in health sector which is evident from the back to back incidents of seizure of spurious pharma drugs from several parts of the State. 

A team of the drugs control squad suddenly visited Modi Pharmaceuticals situated in Sudpara and seized large stock of medicines used for the treatment of cold and cough from the unit.

The samples of the medicines will be sent to laboratory for testing and the details on the drugs can be ascertained only after that, said the Drugs Inspector Babulal Tudu.

The official informed that the authorities of the pharma unit failed to produce satisfactory documentation regarding the production or procurement of the seized medicines. 

A few days ago, a State Drugs Control squad seized huge quantities of fake anti-covid drugs ‘Favipiravir’ in Cuttack.
On Saturday, the State Health Department ordered the Drugs Controller and Police to carry out a joint investigation into the transaction of spurious medicines and submit a report in this regard.

As per sources, as many as 170 boxes of the counterfeit drugs consignment were seized from a chemist shop at Kanika Chhak in the millennium city.

Similarly, in Rourkela, three drugs stores were raided by a team leading to exposure of more than 300 strips of duplicate medicines.



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Pharmaceuticals

Euclidean Capital Llc Sells 39,638 Shares of PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) Stock

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PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) major shareholder Euclidean Capital Llc sold 39,638 shares of the stock in a transaction that occurred on Wednesday, June 9th. The shares were sold at an average price of $33.64, for a total transaction of $1,333,422.32. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Large shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.

Euclidean Capital Llc also recently made the following trade(s):

  • On Monday, June 7th, Euclidean Capital Llc sold 30,721 shares of PMV Pharmaceuticals stock. The shares were sold at an average price of $33.62, for a total transaction of $1,032,840.02.

PMVP stock traded up $1.67 on Friday, hitting $34.40. 208,178 shares of the company’s stock traded hands, compared to its average volume of 176,323. PMV Pharmaceuticals, Inc. has a 1-year low of $26.38 and a 1-year high of $63.22. The firm has a market cap of $1.55 billion and a PE ratio of -13.64. The stock’s fifty day moving average is $33.44.

PMV Pharmaceuticals (NASDAQ:PMVP) last released its earnings results on Friday, May 14th. The company reported ($0.26) EPS for the quarter, meeting the consensus estimate of ($0.26). Equities analysts anticipate that PMV Pharmaceuticals, Inc. will post -1.22 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. raised its holdings in shares of PMV Pharmaceuticals by 2,421.3% during the first quarter. JPMorgan Chase & Co. now owns 935,390 shares of the company’s stock valued at $30,765,000 after acquiring an additional 898,291 shares during the period. Personal CFO Solutions LLC acquired a new stake in shares of PMV Pharmaceuticals during the first quarter valued at approximately $28,111,000. BlackRock Inc. raised its holdings in shares of PMV Pharmaceuticals by 148.1% during the fourth quarter. BlackRock Inc. now owns 1,345,015 shares of the company’s stock valued at $82,731,000 after acquiring an additional 802,977 shares during the period. Avoro Capital Advisors LLC raised its holdings in shares of PMV Pharmaceuticals by 27.0% during the fourth quarter. Avoro Capital Advisors LLC now owns 2,350,267 shares of the company’s stock valued at $130,536,000 after acquiring an additional 500,267 shares during the period. Finally, Deerfield Management Company L.P. Series C raised its holdings in shares of PMV Pharmaceuticals by 126.3% during the first quarter. Deerfield Management Company L.P. Series C now owns 423,680 shares of the company’s stock valued at $13,935,000 after acquiring an additional 236,488 shares during the period. 88.63% of the stock is owned by institutional investors and hedge funds.

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About PMV Pharmaceuticals

PMV Pharmaceuticals, Inc, a precision oncology company, engages in the discovery and development of small molecule, tumor-agnostic therapies for p53 mutations in cancer. The company’s lead product candidate is PC14586, a small molecule that corrects a p53 protein containing the Y220C mutation and restores p53 function.

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Insider Buying and Selling by Quarter for PMV Pharmaceuticals (NASDAQ:PMVP)

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send any questions or comments about this story to [email protected]

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7 Precious Metals Stocks That Will Keep Your Portfolio On Trend

The growing acceptance of cryptocurrency is beginning to make mainstream investors rethink their idea of “store of value.” The trendy possibilities of Bitcoin, Ethereum, and any of the dozens of altcoins that exist on the blockchain are trending like the latest fashion.

However, the thing about fashion is that the more things change the more things stay the same. Just like the simple black dress that won’t go out of fashion, the same can be said for precious metals stocks. One way to think about it would be to say that the existence of a growing cryptocurrency market doesn’t change the value of precious metals.

Precious metals have long been known to be a safe-haven asset in times of market volatility and economic crisis. In fact, during the Covid-19 pandemic, gold prices surged about 30% breaking the $2,000 mark for the first time in its history. This was at a time when the prices of many cryptocurrencies were falling.

And precious metals have also been seen as a hedge against inflation, which seems like more of a certainty with the Federal Reserve’s pledge to keep interest rates at historically low rates into 2023.

Whether you’re looking to take your first steps at crafting a precious metals portfolio or if you want to fine-tune the one you have, we believe this special presentation is a good place to start your research. We’ve identified seven precious metals stocks that look to retain their allure in 2021.

View the “7 Precious Metals Stocks That Will Keep Your Portfolio On Trend”.

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Pharmaceuticals

Hagens Berman Encourages Acadia Pharmaceuticals (ACAD) Investors with Losses to Contact the Firm, Deadline Approaching in Securities Class Action

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SAN FRANCISCO, June 12, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) investors with significant losses to submit your losses now.

Class Period: June 15, 2020 – Apr. 4, 2021
Lead Plaintiff Deadline: June 18, 2021
Visit: www.hbsslaw.com/investor-fraud/ACAD
Contact An Attorney Now: ACAD@hbsslaw.com
844-916-0895

Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) Securities Fraud Action:

The complaint alleges that Defendants misrepresented facts concerning Acadia’s supplemental new drug application (“sNDA”) for NUPLAZID® (pimavanserin), which treats dementia-related psychosis (“DRP”).

Specifically, on July 20, 2020, Acadia announced the FDA accepted for filing the sNDA and stated that its pivotal study for the drug showed a meaningful reduction of psychosis symptoms and a nearly 3X reduction in the risk of relapse for patients continuing on pimavanserin vs. placebo. Thereafter, the company repeatedly stated the FDA had not identified any potential review issues and reiterated the drug’s efficacy.

But the truth began to emerge on Mar. 8, 2021, when Acadia announced that on Mar. 3, 2021 the FDA informed the company that it had identified deficiencies in the sNDA.

Then, on Apr. 5, 2021, Acadia announced the FDA had rejected the sNDA, citing a lack of statistical significance regarding some of the subgroups of dementia and inadequate numbers of patients with some less common dementia subtypes.

“We’re focused on investors’ losses and proving Acadia misled investors by concealing FDA-related review risks for the sNDA,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are an Acadia investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Acadia should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ACAD@hbsslaw.com.

About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 844-916-0895

http://finance.yahoo.com/

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