Nomura expects Indian pharma cos to deliver 11% Y/Y Q3 rev growth

Ipca Laboratories

06/01/2023 07:18

** Brokerage Nomura expects Q3 results to be relatively
strong for pharma cos, but soft for hospitals and diagnostics
cos
    ** Nomura expects 11% revenue growth Y/Y for pharma cos;
sees EBITDA rising 22%, net earnings rising 9%
    ** Third-quarter EBITDA margin to improve on better pricing
in branded markets, better currency realisation, higher volumes
of flu products in the US and some moderation in costs - Nomura
    ** In domestic drug market, most cos to see double-digit
growth, with Sun Pharma  SUN.NS , Alkem Lab  ALKE.NS , Torrent
Pharma  TORP.NS , Dr. Reddy's  REDY.NS  and IPCA labs  IPCA.NS 
to deliver strong growth - Nomura
    ** Brokerage says in the US market, contribution from flu
products and select new launches can support Q/Q rise in sales
for Lupin  LUPN.NS , Alkem  ALKE.NS , and Zydus Lifesciences
 ZYDU.NS 
    ** For hospitals and diagnostics, brokerage expects Q/Q
weakness "on seasonal weakness (festive season and holidays),
high base (COVID) and inflationary pressures"
    ** Nomura expects a 5% Y/Y decline in EBITDA for hospitals
and diagnostics
    ** Brokerage rates Sun Pharma, Torrent Pharma, Dr. Reddy's,
Zydus Lifesciences, Lupin and IPCA labs as "buy", Alkem Lab as
"neutral"
    ** Nifty Pharma index  .NIPHARM  is down 0.64%; the index
fell 11.43% last year
 (Reporting by Anuran Sadhu in Bengaluru)
 ((Anuran.Sadhu@thomsonreuters.com ;))