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Stocks of major pharmaceutical companies are seen trading in a range. Stocks of Cadila Healthcare, Aurobindo Pharma and Cipla Ltd will be eyed, as the companies are slated to detail their quarterly earnings next week. Cadila Healthcare is seen posting 23% rise in net profit at 1.84 bln rupees in Oct-Dec. Aurobindo Pharma's domestic growth is likely to get a push from strong currency realisations. Aurobindo Pharma is likely to surprise the Street when it reports Oct-Dec earnings. Aurobindo has received a couple of US FDA (US Food and Drug Administration) approvals during the quarter, which is a big positive for the company.
Cipla is expected to post net sales growth of 18.3% to 20.24 bln rupees, driven mainly by the domestic performance. On the operating front, the operating margin is expected to come in at 24.9%, up by 470 bps from the last corresponding period (year ago). This will aid the net profit to increase by 49.7% yoy to 4.04 bln rupees. We see Ranbaxy Laboratories negative next week.
