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With stock trading at 19x FY19 PE and growth dependent on the challenging US business, Jefferies said it maintained hold rating with increased target price at Rs 510 (from Rs 480 earlier).
Net Sales are expected to decrease by 4.43 percent Q-o-Q (down 4.78 percent Y-o-Y) to Rs 3332.5 crore, according to KR Choksey. Cipla to report net profit at 199.6 crore down 46.52% year-on-year.
In an interview to CNBC-TV18, Chander Agarwal, MD & CEO, TCI Express spoke about the results and his outlook for the company.
Meanwhile, the earnings before interest, taxes, depreciation and amortisation could come in at Rs 675.4 crore, while its operating margin is seen at 17.8 percent.
Net Sales are expected to increase by 5.6 percent Q-o-Q (up 17.9 percent Y-o-Y) to Rs 3852.5 crore, according to ICICI Securities. Cipla to report net profit at 326.3 crore up 7.3% quarter-on-quarter.
Analysts expect India business growth in range of 11-20 percent YoY while Africa and Rest of the World may report steady sales. API may see slower sales due to lower Nexium API supply.
Surajit Pal, Research Analyst at Prabhudas Lilladher, said the pharma sector is undergoing a transition and all the large midcaps will underperform.
Net Sales are expected to increase by 1.1 percent Q-o-Q (up 22 percent Y-o-Y) to Rs 3790.9 crore, according to ICICI Securities.
Net Sales are expected to decrease by 0.6 percent Q-o-Q (up 20.5 percent Y-o-Y) to Rs 3648.1 crore, according to KR Choksey.
Pharmaceutical firm Cipla's second quarter profit is seen falling 13.4 percent year-on-year to Rs 373.34 crore on dismal operational performance. However, revenue may increase 9 percent to Rs 3,763.2 crore compared with year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Net Sales are expected to increase by 2.6 percent Q-o-Q (up 6.8 percent Y-o-Y) to Rs 3687 crore, according to Centrum.
Revenue is expected to be flat at Rs 3,865.8 crore in the quarter ended June 2016 against Rs 3,852.8 crore in year-ago period but may go up 18.3 percent QoQ.
Sales are expected to increase by 18.7 percent Q-o-Q (up 0.6 percent Y-o-Y) to Rs 3877.4 crore, according to Religare Research.
Net Sales are expected to increase by 21.7 percent Q-o-Q (up 3.2 percent Y-o-Y) to Rs 3976.4 crore, according to Edelweiss
In an interview with CNBC-TV18, Pankaj Pandey of ICICI Direct talked about the brokerage's expectations from the first quarter earnings season and outlined his view on various sectors.
Initiatives are underway to normalise operations and the management is committed to making its EBITDA trajectory more sustainable in FY17, says Umang Vora, Global COO, Cipla.
Analysts polled by CNBC-TV18 say that Cipla is ikely to meet FY16 guidance of 15 percent growth and 150 basis points (bps margin expansion. The company is likely to guide for 20 percent sales growth for FY17 on account of support from Invagen.
Praful Bohra of Religare is confident of the company clocking EBITDA margins of around 20.7 percent for FY16 and a similar number for FY17 too.
As per analysts polled by CNBC-TV18, US business may be driven by continued supplies of Nexium API. Non-ARV (Anti-retroviral) tender business in South Africa & Germany is likely to steady. However, currency depreciation like South African Rand may impact ex-US export markets.
Pharma major Lupin's third quarter earnings beat analysts' expectations on Friday. Revenue increased 13 percent to Rs 3,556 crore in quarter ended December 2015 compared to Rs 3,144.9 crore in year-ago period.
Nexium (used to treat certain stomach and esophagus problem) & Pulmicort (used to prevent asthma attacks) supply may boost company's export formulation business during the quarter. Hence, export formulation business may grow around 35-40 percent year-on-year.
In Q1FY15, other income declined 41 percent to Rs 40.39 crore, which impacted bottomline as well. The pharma company will announce its earnings on August 14.
Given the numbers and the valuations the brokerage house would refrain from hiking the target price for Cipla from the current Rs 1070, Bhavesh Gandhi.
Amid generally weak sales performance, sectors that are likely be stronger are IT (14 percent), pharma (12 percent), media & entertainment (12 percent) and retail (10 percent), says Emkay.
Weak commodity prices, delayed capex recovery and soft rural demand are the key factors that will weigh on June quarter corporate earnings, says CRISIL Research.