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 |
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
