Cipla, Aurobindo, Torrent are 3 preferred picks of HSBC on healthy Q4 expectations

The beardown maturation successful the US markets led by ample merchandise launches has helped thrust net maturation starring to gains for Sun Pharma, Lupin ,Dr Reddy's  , Aurobindo , Cipla , Torrent  , Zydus and stock prices of others too.

The maturation successful basal concern successful the US that had remained nether unit for galore pharmaceutical companies is besides showing signs of betterment for Sun Pharma, Lupin ,Dr Reddy's , Aurobindo , Cipla , Torrent , Zydus and others.

Also Read- Q4 results review: IndiaMART InterMESH zooms 10% contempt people terms cuts arsenic Q4 PAT jumps 79%

The home maturation momentum connected the affirmative broadside besides remains beardown led by Chronic segment. Those Pharma companies having higher vulnerability to acute conception though whitethorn beryllium facing immoderate headwinds owed to little maturation of acute conception of drugs, nevertheless the beardown US maturation is cushioning wide net of astir companies. This is affirmative for Sun Pharma, Lupin ,Dr Reddy's , Aurobindo , Cipla , Torrent , Zydus and others stock prices.

Analysts astatine HSBC India Equity Research successful the Q4 net preview said that they expect bully 4Q for astir of the names they screen with steadfast income successful the US offsetting dilatory India income growth.  

HSBC analysts expect a respectable 4th wherever important US launches (such a generics of aggregate myeloma attraction cause Revlimid) and dependable US generic terms equilibrium retired unfavorable seasonality successful India (domestic) sales.

Also successful their opinion, materials costs person chiefly stayed constant, portion unfavorable geopolitical circumstances whitethorn person resulted successful immoderate further freight expenses. 

All this bodes good for operating show of Sun Pharma, Lupin ,Dr Reddy's , Aurobindo , Cipla , Torrent , Zydus and other.

Generics of Revlimid should proceed to beryllium a important income operator successful the US marketplace for Dr Reddy's, Aurobindo, Zydus, Sun Pharma, and Cipla, with sizeable quarterly income maturation for Sun and Zydus.

For bulk of the companies  in the home formulations space, the maturation could scope from mid azygous digit to debased treble digit considering the information that Indian pharma marketplace successful Q4 had grown astatine a gait of 9.4% year-over-year.

Also Read- Multibagger MOIL stock terms skyrockets 9% to 52-week highs station terms hike announcements

Alkem Laboratories, Biocon, Alembic, Aurobindo  Cipla , Divi's Laboratories, Dr Reddy's, Glenmark, Lupin,  Sun Pharma , Torrent , Zydus Life Sciences are companies nether HSBC Coverage Universe.

HSBC analysts expect a 12.5% twelvemonth connected twelvemonth summation  in revenue, 25.4% emergence successful net earlier involvement taxation depreciation and amortisation starring to 38.4% emergence successful nett net for companies nether their pharma coverage.

Analysts astatine Motilal Oswal Financial Services excessively expect the pharma companies nether their sum beingness to study steadfast 34% YoY net maturation successful 4QFY24. They expect aggregate income to summation 12% YoY for the companies nether their coverage, aided by beardown traction successful the US income and a steadfast show successful the home formulation.

HSBC prefers 3 Buy-rated pharma stocks namely Aurobindo Pharma owed to visibility connected US generics concern including betterment successful generic injectables. Torrent Pharma  whose prospects are aided by a beardown concern model, and Cipla , wherever concerns are mostly priced successful for its cardinal awaited US launches.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions

AlsoComs e un.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 02 May 2024, 06:03 PM IST