Since the Covid pandemic, the pharma companies have grown sharply. With improvement in API sales and steady growth, the sector is booming now.
|Company stock||Current Market Price (CMP)||Target Price (TP)|
The firm added, “Domestic formulations are expected to grow at the higher single-digit to midteen due to continued traction in acute therapies and sustained pick up in chronic pieces.”
Expectations of company performances: BP Equitas
Fermenta bio is expected to report revenue growth of 16.3% YoY to Rs. 1,157mn, led by improved traction in both Human and Animal VD3 business. Due to a favorable base and better product mix, the EBITDA margin can improve by 613bps to 16.4% from 10.2% in Q4FY21. We expect Adj PAT to witness a decline of 2.5% at Rs. 72mn.
Granules India is expected to report Rs. 10.06bn (+25.8% YoY) revenue, mainly driven by better realization supported by the price increase and partially due to new product introduction. We expect the EBITDA margin to recover on a sequential basis by 155bps to 19% from 17.4% in Q3FY22 on the back of taking a partial price increase (in line with RM cost increase) by re-negotiation with some of its customers and improving product mix.
We expect Lupin’s revenues to grow by 10.7% YoY, owing to healthy growth in the domestic business. The US business to post low single-digit growth. The EBITDA margin is expected to decline by 531bps YoY to 13.5% due to increased input cost pressures and higher other expenses. However, Adj. PAT is expected to de-grow by 47.3% YoY to Rs. 2.95bn.
The above stock was picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.