Gland Pharma’s shares have specialized niche injectables manufacturers, and have been on fire, with the company’s prospects getting a boost following the approval for the Sputnik V vaccine amid a rapid rise in vaccinations across the country. The company has entered an agreement with the Russian Direct Investment Fund (RDIF) to supply up to 252 million doses of the shots.

It is also in talks with several other vaccine developers, including Pfizer, to manufacture and supply shots, said analysts at Motilal Oswal Financial Services Ltd. Not only that, the opening of vaccination for all above 18 years can prove to be a bigger value creator for Gland Pharma. RDIF can also provide more opportunities. The company has tied up with other manufacturers to acquire 1.3 billion doses to supply to 50 countries.

“At a $3.5 price per dose at 25-30 per cent capacity utilization for the domestic market, Gland Pharma could add Rs1,500 crore sales (EBITDA margins 15 per cent)” said analysts at Axis Securities Ltd. This could add incremental EPS of Rs 6.4 a share and about Rs 200 value per share to Gland Pharma’s share price.

Not surprisingly, the stock scaled a fresh high on Tuesday, having risen more than 45 per cent in the last six months. As such, the company’s prospects remain strong given the unique business-to-business model it operates on which enables it to grow its market share through multiple marketing partnerships. The firm has also been less on the receiving side of regulatory issues.

Over the near-to-medium term, it awaits ANDA approval and launches for generic versions of Ertapenem and Meropenem. Given that Gland Pharma has been a consistent supplier of Enoxaparin Sodium, there is scope for an increased offtake of the same, point out analysts at Motilal Oswal. The brokerage expects the company’s net profit to grow 24 per cent on a compounded annual growth rate and sees a 25 per cent CAGR for sales over FY20–23.