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Stocks of major pharmaceutical stocks are expected to be subdued next week, except the ones that are reporting their quarterly earnings. There has been a lot of action in the pharmaceutical stocks this week. So, next week is expected to be quite subdued.
Dr Reddy's Laboratories Ltd and Wockhardt Ltd will detail their Oct-Dec earnings Thursday. The company's US generics business is seen reporting strong numbers on the back of low base, new product launches, favourable currency movement, and 22.5% on-year growth in revenues from international branded formulation business. Adjusted PAT (profit after tax) would be 3.42 bln rupees, up 42% on year due to lower tax rate. Including the contribution from one-off opportunities, we expect PAT to decline 22% YoY to 3.99 bln rupees.
Wockhardt Ltd is seen reporting a 10.2% year-on-year rise in its revenue, led by its continuing strong growth in the US market and in line with industry growth in its domestic formulations. Its EBITDA (earnings before interest, tax, depreciation, and amortisation) margin is expected to improve 70 bps YoY, pushed up by higher growth in the US market. The margin increase and substantial interest-cost reduction would lead to strong 32.4% YoY growth in adjusted PAT (profit after tax).
Stocks of major pharmaceutical stocks are expected to be subdued next week, except the ones that are reporting their quarterly earnings. There has been a lot of action in the pharmaceutical stocks this week. So, next week is expected to be quite subdued.
Dr Reddy's Laboratories Ltd and Wockhardt Ltd will detail their Oct-Dec earnings Thursday. The company's US generics business is seen reporting strong numbers on the back of low base, new product launches, favourable currency movement, and 22.5% on-year growth in revenues from international branded formulation business. Adjusted PAT (profit after tax) would be 3.42 bln rupees, up 42% on year due to lower tax rate. Including the contribution from one-off opportunities, we expect PAT to decline 22% YoY to 3.99 bln rupees.
Wockhardt Ltd is seen reporting a 10.2% year-on-year rise in its revenue, led by its continuing strong growth in the US market and in line with industry growth in its domestic formulations. Its EBITDA (earnings before interest, tax, depreciation, and amortisation) margin is expected to improve 70 bps YoY, pushed up by higher growth in the US market. The margin increase and substantial interest-cost reduction would lead to strong 32.4% YoY growth in adjusted PAT (profit after tax).
