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Buy 7 Pharma Company Stocks Post Quarterly Results

Pharma Company Stocks
Written by Zimmy

Buy 7 Pharma Company Stocks Post Quarterly Results

The stock of Zydus Lifesciences is available for purchase at a price target of Rs 440

Sharekhan suggests buying Zydus Lifesciences stock after the results season is over. “Zydus’ Q1FY23 margins contracted due to high-cost pressures, with gross margins also falling,” Sharekhan said. The topline showed steady growth yo-y, indicating an improvement. The results were operationally consistent with estimates, while PAT came in ahead of estimates due to higher other income. The brokerage stated that they have refined their estimates for FY23E as well as Fy24E.

Cipla shares can be purchased at a target price of Rs 1150

Sharekhan also recommends Cipla, a major pharma company. The company’s Q1FY23 performance, due to the high base from Covid-led demand was poor. However, sequentially there has been a significant improvement. The US markets have performed well with double-digit growth. India was negatively affected by a lower base. The brokerage stated that the operational results were in line with estimates. They have therefore retained their FY23/FY24E estimates.

Divis stock can be purchased at a target price of Rs 4450

Sharekhan said Divis Q1FY23 results were mixed. They reflected higher operating costs, while the lower tax rate resulted in a double-digit increase in PAT and results that missed estimates. “The operating margins declined sharply by 590bps yo-y, and the management commentary indicates that there will be continued pricing pressures. The brokerage stated that they have revised their FY23E and FY24E estimates by 11%.

Sun Pharma stocks are a buy with a price target at Rs 1130: Sharekhan

Sun Pharma reported strong sequential growth for Q1FY23, while growth on a yo-y basis was moderated by a high base due to COVID-19. “Results are better than expected. The brokerage stated that the results were better than expected, citing the 29% year-over-year growth in specialty sales and encouraging comments. They have also revised their estimates by 4% to 8% for FY23E as well as FY24E.

Torrent Pharma

Torrent reported a healthy Q1FY2023 performance and results that were better than expected. The performance was supported by double-digit growth in Brazil and domestic business. The brokerage stated that this, along with encouraging management commentary and an expected healthy margin trajectory, has led to us revising upwards our estimates for FY2023E- FY2024E.

Lupin: Buy at Rs 780 or less

Lupin reported a weak performance in Q1FY2023, with OPM surprising negatively. This was due to confluence factors like pricing pressures in the US as well as remediation costs at its plants. The brokerage stated that “but, commentary on India and US business was very encouraging; and factoring in this, we have reduced our FY2023 estimates by 15% while we have generally maintained our FY2024E estimations.”

Biocon: Buy the stock at a target price of Rs 360

Q1FY23 was a weak quarter, and results were below estimates. Sharekhan stated in his report that even though revenues increased by double digits, higher costs have severely affected OPM. Therefore, estimates for FY23E/FY24E have been lowered by 9% and 6 percent.

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