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Last Updated : Jan 14, 2012 12:01 PM IST | Source: Moneycontrol.com

Pharma stocks results preview for Q3FY12: KRChoksey

KRChoksey has come with its December quarterly earning estimates for Pharma sector. According to the research firm, Q3FY12 is expected to be a strong quarter in terms of top-line growth mainly due to improved performance in the Indian pharmaceutical market, launch of limited competitive products in the US market & rupee depreciation.

 
 
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KRChoksey has come with its December quarterly earning estimates for pharma sector. According to the research firm, Q3FY12 is expected to be a strong quarter in terms of top-line growth mainly due to improved performance in the Indian pharmaceutical market, launch of limited competitive products in the US market & rupee depreciation.

"We expect Q3FY12 to be a strong quarter in terms of top-line growth mainly due to improved performance in the Indian pharmaceutical market, launch of limited competitive products in the US market & rupee depreciation. Overall operating margins would improve due to rupee depreciation but at the net level, companies with exposure to foreign currency debt & hedged on derivatives position might get impacted negatively", says KR Choksey's Research report.

Preview on Pharma:

We expect Q3FY12 to show improved performance aided mainly by pick up in the Indian pharmaceuticals market, wide penetration of generics segment due to huge patent expiry & rupee depreciation to positively impact export-oriented companies.

Overall operating margins would be positively impacted mainly due to ~15% rupee depreciation in the current quarter.

From our KRC universe, considering the foreign currency changes & the expected quarter performance major beneficiaries would be Glenmark & Dr Reddys. Ranbaxy's profit could be offsetted due to leverage & Hedging.

Factors to watch in the Q3FY12E result:

Forex loss/gain

Monetizing key Para IV/limited competition products & new product launches in US market

Top Picks:
Glenmark, Unichem

 

Company Name

Sales (Rs Cr)

PAT (Rs Cr)

Reco.

 

FY12E

FY13E

FY12E

FY13E

Cadila Healthcare

5,169

5,964

826

997

BUY

Dishman

1,080

1,194

45

69

SELL

Ranbaxy

9,206

11,219

949

1,494

HOLD

Glenmark Pharma

3,606

3,925

413

509

BUY

Unichem Labs

934

1,087

93

136

BUY

Dr. Reddys

8,650

9,520

1,131

1,295

HOLD

 

 

 

 

 

 

 

 

 

 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jan 11, 2012 06:20 pm
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