India's Zydus Lifesciences Q1 profit beats estimates on strong US demand

Alembic Pharmaceuticals

09/08/2024 08:46

BENGALURU, Aug 9 (Reuters) - Indian drugmaker Zydus Lifesciences  ZYDU.NS  reported a
bigger-than-expected first-quarter profit on Friday, driven by strong demand for its generic respiratory drugs in
its key market of North America.
    The company's consolidated net profit jumped nearly 31% year-on-year to 14.2 billion rupees ($169.2 million)
in the quarter ended June 30, beat analysts' average estimate of 12.34 billion rupees, per LSEG data.
    
    KEY CONTEXT
    Indian generic drugmakers earn a major chunk of their revenue from the U.S., the world's largest
pharmaceutical market. Zydus Life's larger rivals Cipla  CIPL.NS  and Dr Reddy's  REDY.NS  beat profit estimates
on strong demand in the country.
    Alembic Pharma's  ALEM.NS  profit for the quarter also rose, led by strong U.S. sales.
    However, these drugmakers have been grappling with price erosion in the market amid stiff competition.
    
    PEER COMPARISON
                                    Valuation     Estimates (next 12         Analysts' sentiment         
                                    (next 12           months)                                           
                                     months)                                                             
                      RIC         PE     EV/EBI  Revenue     Profit    Mean     # of      Stock to       Div
                                         TDA     growth (%)  growth    rating*  analysts  price          yield
                                                             (%)                          target**       (%)
 Zydus Lifesciences    ZYDU.NS    29.02   20.83    10.83      10.99    Hold           26      1.25           0.23
 Alembic               ALEM.NS    31.07   19.40    11.48      16.92    Hold           10      1.29           0.91
 Pharmaceuticals                                                                                         
 Cipla                 CIPL.NS    25.25   15.73     8.88       9.88    Hold           31      0.95           0.86
 Dr Reddy's            REDY.NS    19.61   12.33    10.36       3.34    Hold           33      1.04           0.59
 Laboratories                                                                                            
 * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE

    -- All data from LSEG
    -- $1 = 83.9200 Indian rupees
    

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Zydus    https://tmsnrt.rs/3WUHZqB
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))