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Jan 10, 2012, 07.08 PM IST
Emkay Global Financial Services has come with its December quarterly earning estimates for pharmaceutical sector. According to the research firm the sector is expected to report a growth of 18% YoY (5% QoQ) in revenues partly driven by Rupee depreciation which is likely to be 4-5% of the overall growth.
Emkay Global Financial Services has come with its December quarterly earning estimates for pharmaceutical sector. According to the research firm the sector is expected to report a growth of 18% YoY (5% QoQ) in revenues partly driven by Rupee depreciation which is likely to be 4-5% of the overall growth.
Divi’s Lab (+32%), Sun Pharma (+27%), Ipca Labs (+28%), Glenmark Pharma (+27%), Dr. Reddys (+23%) and Ranbaxy (+17%) will be outperformers. The laggards will be Uncihem Labs (+6%), Aurobindo (+6%) & GSK (+11%). OPM for the Emkay Pharma Universe is expected to 24% compared to 22% in Q2FY12 and 21% in Q3FY11. Expansion in EBIDTA margins will 200-250bps on account of Rupee depreciation and 100-150bps due to Para-IVs. EBITDA margin expansion will be led by Ranbaxy Labs (+1000bps YoY & +1389bps QoQ), Ipca Labs (+678bps YoY & +108bps QoQ), Sun Pharma (+1000bps YoY & -280bps QoQ) and Dr. Reddys (+617bps YoY & 504bps QoQ). PAT of Pharma universe is likely to grow by 51% YoY (25% QoQ) compared to 4% YoY growth in Q2FY12 driven by Rupee depreciation and Para-IVs Growth in APAT will be on account of 69% growth in Sun Pharma, 77% growth in Dr. Reddys (led by Zyprexa), 420% growth in Ranbaxy (led by Lipitor) and 35% growth in Divi’s Lab. In the generics space –Ipca Labs and Glenmark Pharma are our preferred bet. In the CRAMS space –Divi’s and Jubilant Life are our preferred bet.
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Tags: Emkay Global Financial Services, pharmaceutical sector, December quarterly earning estimates, Aurobindo Pharma, Cadila Healthcare, Cipla, Dishman Pharma, Divi's Lab, Dr. Reddy's Lab, GSK Pharma, Glenmark Pharma, Ipca Lab, Jubilant Life, Lupin, Ranbaxy Labs, Sun Pharma, Torrent Pharma, Unichem Labs
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