GOLDEN RULES FOR TRADING

Pharma Stocks Outlook for the week – 20 to 22.10.2014

Pharma Stocks Outlook for the week – 20 to 22.10.2014

Stocks of pharmaceutical companies are expected to show stock-specific movement
next week based on Jul-Sep earnings on lack of sector specific triggers. There are
no sectoral triggers for pharma space, but it could also depend on how broad
markets react to the state election results in the truncated weekend.

Alembic Pharmaceutical Ltd will report its earnings for the quarter ended September
on Monday and Biocon Ltd and Indoco Remedies Ltd will report their earnings on
Monday and Tuesday, respectively. Revenue growth (of Alembic Pharma) is
expected to be to driven by strong US sales and domestic specialty segment.

EBITDA expected to be at 19.7% in Q2FY15, +62/+13 bps YoY/QoQ.
For Bengaluru-based Biocon, the Street sees the company reporting a 23% on-year
rise in profit after tax to 1.17 bln rupees on a standalone basis. The company's
sales are likely to grow 6% year-on-year to 7.7 bln rupees. The stock trades at
21.6x FY15 estimates and 17.7x FY16 estimates earnings. Option values for the future include separate listing of Syngene and outlicencing of research molecules.