BUSINESS
SRF: Superior execution continues for speciality; add stock on decline
The bulk of SRF's capex allocation in the medium term is dedicated to chemicals to gear up its capacity to meet the revival in global demand in the next 2-3 years
BUSINESS
Aarti Industries: Planning for a decade; accumulate
Aarti Industries' strong export market and a resilient pharma business should offset the discretionary demand contraction in domestic market in the near term
BUSINESS
PI Industries: Next catalyst is the pharma opportunity
In the near to medium term, inorganic opportunity for PI Industries is the key trigger to keep track of
TRENDS
Gland Pharma: Vaccine opportunity to facilitate foray into biosimilars
Even after the contract with Sputnik V, it will have idle capacity available to pursue similar opportunities, including that of mRNA- platform-based ones.
BUSINESS
Cipla — While COVID scope continues, watch out for FY23
Just when it seemed that Covid tailwinds are waning for Cipla, the drug maker has repositioned itself for the opportunities emerging from the second wave of the pandemic
BUSINESS
Dr Reddy’s: COVID opportunity gets wings
Along with Sputnik V and 2-DG, Dr Reddys has further strengthened its COVID opportunity, which makes it a worthy watch
BUSINESS
Herd Immunity Part 2: Is the race a sprint or a marathon?
In terms of Fauci’s estimated threshold (70 percent) for herd immunity, India might reach that goal by mid-November.
BUSINESS
Lupin: Focus on inhalation and bio-similars to aid margins in medium term
In the medium term, the focus is likely to be on the inhalation and biosimilar categories for Lupin, with scale-up in both US and European markets
TRENDS
Herd Immunity Part 1: Why the markets are not feeling the pain of the second wave
With markets making a wild swing from despondency to euphoria last year, investors do not want to miss a recovery rally this time around and are exercising patience in the hope of a better second half
BUSINESS
Atul: Proxy for global recovery
We believe that even if the domestic equity market underperforms global indices, the Indian chemicals sector should be resilient in the near- to medium-term. Atul is one of the preferred proxies to play this theme
BUSINESS
Laurus Labs: Diversification to speed up in FY23; add on declines
There is a perceptible change in the Laurus Labs' management commentary in the last 18 months that points to growth sustenance for the medium term
BUSINESS
Reliance Industries Q4FY21: Strong contribution from digital businesses likely to offset probable weakness in cyclical sectors
RIL reported a strong sequential improvement for its Oil derivative and retail segments. Petrochemicals exhibited elevated product spreads and in the case of retail, the trend of sequential recovery continued across consumption baskets. Jio continued to report strong numbers despite lower ARPU
BUSINESS
Syngene: Heavy investment phase makes it a long-term play
Beyond contract research, another trend to watch for Syngene is the pick-up in contract manufacturing business in biologics and APIs
TRENDS
Fed: The US economy has just got vaccinated
Even though the next few months of payroll data are expected to be exceptionally good, the Fed will give due credence to the weak macroeconomic situation elsewhere in the world before hinting at a rate hike cycle
BUSINESS
A play on likely outperformance of agro-chemical sector in near term
Rallis' focus on the contract manufacturing business and filling portfolio gaps are a key watch
TRENDS
What is the endgame for the second wave? How should investors position themselves? Part-2
Given improved demand scenario in developed markets and ebbing of health crises elsewhere, India’s export oriented sectors – IT, pharma and chemicals – are expected to outperform in the short to medium run
BUSINESS
What is the endgame for the second wave? How should investors position themselves? Part-1
Countries having high coverage of COVID jabs have seen a sharp decline in death rates as the vaccination coverage picked up
BUSINESS
Phillips Carbon: Second wave slams brakes on recovery theme
The second wave of COVID is likely to have an impact on domestic demand for discretionary players in auto and consumer durables. Phillips Carbon is one such name
TRENDS
Bhansali Engineering Q4: Margins likely to moderate in near term; valuation fair
The drivers to watch Bhansali Engineering are a pick-up in the end-market demand and a traction in greenfield capex plan
BUSINESS
Deregulation of vaccine rollout: What it means for pharma players
Dr Reddy’s, Gland Pharma, Strides, Cadila, Aurobindo are some of the names that merit a close watch as operating leverage plays out
TRENDS
Solara Active: Aurore deal to act as a booster for CRAMS; accumulate
The Aurore deal should help Solara in ramping up CRAMS portfolio, diversifying the API product basket and also aiding backward integration
TRENDS
What ‘second wave’ means for investors in Indian pharma
Multi-year opportunity awaits Indian vaccine manufacturers such as DRL, Gland Pharma, Aurobindo Pharma and Cadila Pharma
BUSINESS
CDMO leader ready to straddle entire pharma value chain
Except phosgenation and fluorination, Suven Pharma is capable of handling every other chemistry. This adds to the scope for contract engagements in speciality chemicals and clinical development for pharma
BUSINESS
Laxmi Organic: Investment horizon should match business transformation time span
Laxmi Organic is certainly on a transformation mode, and, hence, investors need to be patient enough to witness the change in business mix.
