How this fund found multi-baggers in Annapurna Swadisht, Droneacharya and other SME stocks Will these focus areas in state budgets do the trick for four incumbent governments?īyju’s defers FY24 appraisals as it looks to conserve cash amid delay in fundingīanks are increasing MCLR rates: Should you switch to repo-linked home loans and save on EMIs? Tokyo can show Delhi how to prevent floods Will Mongolia’s crackdown on graft unlock its mineral riches? (republished from the FT) Startup Street: Bangalore startups hit hardest by funding winter Manipur’s wounds should not be allowed to fester Tech, easy access to borrower data fuelling rise in NBFCs’ unsecured loans SEBI’s overhaul makes reporting of material events tighter, timely and detailedĪ game of Chinese Checkers that India must play well in a multipolar world Is the market in for a painful adjustment? US Fed researcher says yesīajaj Finance’s near perfect Q1 is ironically a worry for investors Tech Mahindra Q1 FY24 – A complete washoutĪxis Bank Q1 FY24 – Steady show, set to close the valuation gap with peersĭixon Technologies Q1: Should you cash in on the stock euphoria?īajaj Finance posts stellar Q1 FY24 earnings, but concerns are risingĬolgate Palmolive India: All-round performance More investing insights from our research teamįed policy: What next for investors after a strong run in equities? With the market seeing incremental improvement, investors have a solid reason to cheer. Yet, the earnings outlook for large finished-dosage pharma companies are firmly anchored to the US market, the largest and most profitable drug market in the world. While industry data points to subdued volume growth, as our Chart of the Day explains, easing raw material costs and sustained price hikes augur well for pharma companies. Companies are focusing on the branded generic drug business and licensed products to drive growth. India, the other large market, is seeing a steady uptick. The rebound in pharma shares is not being driven by the US alone. This is supportive for medium-term earnings growth, which makes us constructive on the business,” writes Anubhav Sahu in his Q1 results analysis. “(Cipla’s) chronic portfolio continues to gain strength and the US base business has moved to a new orbit. Jefferies India and Nuvama Institutional Equities have raised earnings estimates of both companies for FY24 and FY25. Cipla expects better profit margins in FY24 compared to FY23. The improving outlook for the US business is driving earnings upgrades. Similarly, Lanreotide injection, used in treating tumours, is aiding Cipla’s US sales. Generic Revlimid, used in the treatment of multiple myeloma, is contributing sizeable revenues to Dr Reddy’s. More importantly, companies that are able to build a complex drug pipeline and can overcome regulatory hurdles are seeing good success in high value limited competition drugs. Glenmark Life Sciences has also indicated improved demand and visibility for FY24. Drug shortages and supply chain readjustments are driving increased volume offtake by customers, said the managements of Cipla and Dr Reddy’s. The intensity of price erosion in the generic drug business has reduced. The US drug market has seen a notable change in the past couple of months. Sun Pharma, Aurobindo Pharma and Lupin, which have a sizeable US business, gained 2-5 percent. The NSE pharma, healthcare indices were among leading gainers in Thursday trading. Their results and commentary have not only lifted shares of Cipla and Dr Reddy’s, but other pharma companies as well. Dr Reddy’s, which reported a 25 percent sequential expansion in US sales, expects to maintain and grow revenues. Importantly, managements of both companies expect the US business to maintain the positive momentum.Ĭipla has raised the quarterly revenue outlook for the US base-business to $210-215 million from $190-195 million given in May. Their June quarter results exceeded Street estimates, thanks to a healthy expansion in North America revenues. Take the case of Cipla and Dr Reddy’s Laboratories. The US market may be giving a difficult time to IT services companies, but pharmaceutical companies are seeing a gradual rebound in the market. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |